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| Thursday, January 08, 2009
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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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| Author |
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MissyS
(Florida)
Posts:48
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| 08/05/2008 9:23 AM |
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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. |
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SheliaH
(Indiana)
Posts:92
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| 08/05/2008 8:01 PM |
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| I'm not in Florida, but I think the lender is liable beginning with the date it takes posession of the house. You could try going after the homeowner for what's owed prior to that, but these days, you may very well end up tossing good money after bad (if the homeowner didn't pay the association or the mortgage, chances are there's not much in assets to pay anyone else - which is what your attorney was probably getting at. |
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RobertR1
(South Carolina)
Posts:2511
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| 08/06/2008 5:04 AM |
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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. |
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KirkW1
(Texas)
Posts:1190
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| 08/06/2008 5:22 PM |
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| If the bank forecloses on a property which owes money to the HOA, then the HOA is right behind the bank in line for money. So after the sale of the property the bank must first pay any taxes. Then they pay themselves, then if money is left the HOA. If money is then left (and there isn't a second mortgage) then the former owner receives it. The catch is that the bank seldom seems to even get what they are owed. |
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PeterB1
(Florida)
Posts:70
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| 08/06/2008 6:13 PM |
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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. |
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MissyS
(Florida)
Posts:48
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| 08/07/2008 7:54 AM |
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| Peter I can't thank you enough for the great info. I'm glad you sent the overview, because my eyes were beginning to cross lol. |
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| You are not authorized to post a reply. |
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