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DianeP4 (Florida)
Posts: 2
Posted:
Can you foreclose on a house in Florida for non-payment of HOA dues if it is titled as an LLC? How would it work?
GeorgeS21 (Florida)
Posts: 3,808
Posted:
I think so - don’t know why an LLC would matter.

We send Letter of Intent to Lien, wait 45 days, the Lien, then LoI to Foreclose, then 45 days, then start Foreclosure..

We do not want to foreclose, but sometimes have to take it to that if the owner is gaming. Usually, they see it will cost them more to fight than pay.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Foreclosure stops the bleeding. So your just basically trying to get the non paying owner out and chance a new member/owner will pay. Don't pursue this unless understand that.

As far as being an LLC you should be able to foreclose on them like anyone else. However, it's a bit more confusing. I like to call LLC's "Pick who goes to prison" type of set up. So you probably dealing with multiple owners in this LLC. Just going to make it a bit more difficult to pin down the actual person who wants to claim membership without drawing straws.

We liened a LLC but never foreclosed on one. However, I saw posted in the newspaper we were not the only ones pursuing that LLC. They owed quite a few people money. So we were just next in line. Best to have just liened than foreclose since bank gets paid first and foremost.

Former HOA President
DianeP4 (Florida)
Posts: 2
Posted:
Isn't there a five year period where you have to move forward with the Leon or you lose the case??? Thought I read this a little while ago.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Don’t know ... since you brought it up, what does your research show?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Why? We had a policy of 6 months behind we liened. 1 year behind we CONSIDERED foreclosure. 6 months was the break even point for filing fees and legal.

You don't want to sue for backed dues. That may be where your getting the 5 years thing. Those do have to be renewed around that time period. You should never sue for back dues. Liens means you can't sell till it's paid.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
As others have said, you can sue them like anyone else, but the primary question is will you get paid (just like with anyone else).

LLCs are usually established to protect the personal assets of the person or persons who set them up for running a business (this is likey one of those pesky investor-owners things). If you sue for delinquencies, the next step after getting a judgment would be to see if there are any assets you might need to grab to settle the debt. Or get the rental fees garnished so the money is going to the association instead of the homeowner/LLC.

We had our run-ins with LLCs and found that the primary asset they had was - the house and it wasn't a huge deal for them to give that up, especially if there were also back taxes due, and the government will always get theirs before anyone else. In short, we often wound up having to write off the debt.

Anytime you're considering foreclosure, remember it's done as a last resort and often, the best you can hope for is to get rid of the owner and hopefully he/she/they are replaced with someone more responsible. Talk to your attorney and consider all your options before proceeding.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Diane,

Did your independent research provide a clear answer to your five year question? Could you share it with us?
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By DianeP4 on 01/26/2020 8:50 PM
Isn't there a five year period where you have to move forward with the Leon or you lose the case??? Thought I read this a little while ago.

Yes there is, in Florida. I don't know the exact time limit but a lien must be re-filed within that time to keep it in place.

THIS blog post from 2016 says that, in Florida, a condo's lien will expire 12 months after it's recorded but an HOA's recorded lien will never expire.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Yes.

Talk to an attorney.

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