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Subject: Florida HOA Foreclosure
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Author Messages
VanessaP
(New York)

Posts:1


05/02/2021 11:33 AM  
In Florida in the HOA foreclosure what happens to the reverse mortgage and how are liens paid? If a third party purchases does the reverse mortgage company get paid first? What if there is not enough money from the HOA foreclosure to pay off the reverse mortgage?
MelissaP1
(Alabama)

Posts:10126


05/02/2021 12:48 PM  
Any foreclosure the Bank gets paid first then the HOA UNLESS you are in the few states with "Super liens". That just means the HOA is on equal footing of the bank. It will be next in line to be paid if any money is leftover. The HOA never ever want to own that home. Bad idea.

A foreclosure stops as soon as the debt owed is paid.

Former HOA President
CathyA3
(Ohio)

Posts:1881


05/02/2021 1:01 PM  
This will be a question for a lawyer. There are different types of products that fall under the umbrella of "reverse mortgage", and the details of the individual agreement will matter, as may the type of property. HOA governing documents and state statutes vary. Also, many reverse mortgages are FHA insured, so federal law also comes into play. It would not be safe to generalize without knowing all the these details.

https://www.alllaw.com/articles/nolo/foreclosure/can-reverse-mortgage-be-foreclosed.html
https://gshoalaw.com/reverse-mortgages-2014/
https://www.hud.gov/hudprograms/hecm

If you are a board member who is looking at such a foreclosure in your community, you should consult with the COA/HOA's attorney before taking any action.

https://wmdouglas.com/the-reverse-mortgage-hoa-collection-efforts/

Finally, anyone who is considering taking out a reverse mortgage themselves should consult with their own expert (NOT the lender) so that they understand the benefits and pitfalls.


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Forums > Homeowner Association > HOA Discussions > Florida HOA Foreclosure



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