HOA Association Fee Foreclosure

Our HOA in Parrish Florida, has conducted 3 foreclousre sales over non payment of asscociation fee's to the highest bidder in a fourclosure sale. These are homes that the bank foreclosed on the original owners. The person who is the buyer has a certificate of title and has moved into one home and is trying to rent the other 2. Is it true that the bank can still foreclose? We've located and notified them. More importantly, does the Certificate of Title give the buyer of the lien the right to move in? In short, are they squatters?

Scott

I agree with Shelia. This has been discussed out here a few times. The general thinking (which I agree with) is for the HOA to file a lien on the unit but be realistic and assume that rarely will the HOA see any money. The best thing an HOA can do is aid/assist in the resale rather then become a delayer/deterrent so a new dues paying owner gets in there ASAP.

Once an HOA "sees" a budget issue they must adddress it ASAP. They cannot rob Peter to pay Paul (such as use Capital Reserves) for operating expenses as many do. This is cutting your nose off to spite your face and might even be financial malfeasance. Like it or not, the most likely way to deal with the problem is to make up for the shortfall with a dues increase.

John

I agree with you Bruce...The information doesn't seem right. The HOA shouldn't have been foreclosing if the bank was already or had foreclosed on the houses. When a HOA does a foreclosure it's basically doing the work of the bank. The bank gets paid FIRST and FOREMOST, so any sale money would have gone to pay off the bank. The leftovers from that would then go to the HOA if any. It seems like a case of the egg before the chicken here...

How could the HOA have foreclosed on a bank foreclosed property? Not possible in my opinion or experience. There's a piece of the puzzle missing here or misinformation. I would look into the information more to find out what exactly happened. Somewhere there is a disconnect. I've done a HOA foreclosure and dealt with other similar foreclosure situations. This doesn't sound right but doesn't mean the person doesn't own title. It just may not have been in the way you described.

Guess something appears wrong with the summary anchor tag:

Simple description:
http://www.sarasotagroup.com/PageManager/Default.aspx/PageID=921577&NF=1

Scott

Based on you saying the person has certificate of title, it sounds like the person might have bought all 3 at a foreclosure sale(s0. Are you doubting he did? Also do you think the association should have gotten anything out of the deal?

Thanks

they're certificates of title, we, that is,the rest of the home owners interested, don't know if the bank had already foreclosed. however,the property was abandoned. We did contact the banks and at least one bank has promised to pursue the individual as there was a mortgage. Two of the certificates showed not objections in the required time frame, the last has funds held for a final order or judgement. I hope I haven't confused the issue of foreclosing, our assciation was owed fee's and I think they took action seperate from any bank. They did not tell us of their intentions.

Would have been nice if they told their own members...I answered another earlier, they were in fact certificates of title,and noted 2 of the 3 cleared the dispute period. The third has funds on hold for a final order, must be the one the bank found out about. One of my basic questions has always been, can they get clear ownership this way? If there is a mortgage is the bank able to get them out and continue with a possible sale?

As Janet said:

It would appear that they have current title to at least two of the properties and after the 10 days lapse potentially the third. At that time moving forward they will be responsible for the HOA fees, which is good as you potentially will be able to collect the HOA dues moving forward. This is potentially better for the HOA rather than fighting with bank for dues.

Prior owner before foreclosure would be responsible for past dues, unless there was a lien and HOA possibly collected through the foreclosure.

Simply put the HOA hopefully will now have someone properly paying the assessments instead of someone who previously was not paying. Therefore, who cares who owns or how obtained as long as they properly pay and benefit everyone in the HOA.

Janet laid it out simple enough. Well done Janet.

If there is not now an "owner" that will pay dues? Is this not to the good (maybe not ideal bit to the good)) of the association?

I ask many questions out here and while I may not accept all the answers, I learn. This is were I often issues with many conversations/beliefs on this chat. Even when laid out simple and in black and white many will continue to dispute/argue. I can only assume they have an agenda and are searching for answers to back that agenda versus truly seeking answers/advice. I would hate to say they are not "bright" enough to understand the answer, versus have an agenda many of which are hidden.

I participate in a sports based chat (les and less) where over the years many "professionnals" in the sport have dropped off as they get tired of "amatuers" arguing/disagreeing with them especially on Basic 101 issues.