Foreclosures

I know this has been asked numerous times and I did a search and couldn't find what I'm looking for.
When a lender foreclosures does the HOA loose their past due assessment? I thought there is a Florida 720 Statute that the assessment stays with the property. Our attorney told us we will not be able to collect.

SheliaH,

On the money Shelia. It is a sad picture and getting worse. Also, in most documents the call for any uncollected monies that is owed to the regime, be prorated and collected from the other homeowners. This sounds harsh, and is, but there is reason for it, having to do with Budgets I believe. Also maybe stuck in there to serve developer before turnover. Anyway check your documents. A fallout of this just may be the interest in the Regime throughout the association can be raised to a level, more people will get interested.

Try looking this up in www.flsenate.gov, but here's a summary.

SB 1986 affects homeowners associations regarding lien claims. The effective date is July 1, 2008. This bill provides that the holder of a first mortgage who forecloses on the mortgage is liable for up to twelve months of assessments or 1% of the original mortgage amount, whichever is less, for past due assessments. Also, provides forms and procedures for notice of a claim by a homeowners’ association and an objection to such a claim. The filing of an objection obligates the association to foreclose the lien within 90 days or, failing that, to waive the right to foreclose on that lien. Gives further direction and a form for use in qualifying offers, which are a means for an owner to forestall foreclosure of an association lien in exchange for an agreement to pay the outstanding balance by a certain date.