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What happens to the first mortgage on a condo in Florida when the condominium association forecloses for unpaid association fees?
Wiki User
∙ 14y ago
For the condo association foreclosure to be valid, the bank who holds the mortgage must be notified of the foreclosure action, and the mortgage company has the opportunity to do a couple of things: They can pay the delinquent condo fees themselves, to protect their own interests, and force the borrower to pay them back. If the borrower is unable to repay the condo fees, it could put the mortgage payments in default, and be grounds for the lender to begin foreclosure proceedings. If the borrower is behind in their mortgage payments, the bank can join in the condo association's foreclosure action themselves. This is actually a great assistance to the bank, as it saves them the time and trouble of initiating the lawsuit - they just get to piggy-back on the condo association's foreclosure, which makes the foreclosure sale happen that much sooner. And since the bank's lien has priority over the condo association, the bank would be the one to get paid off first if the property got sold to a third party at the foreclosure sale, or if nobody bid on the property, they would be the ones who would become owners of the condo. If, for whatever reason, despite getting proper notice, the bank does nothing and the condo association forecloses on the property. The first mortgage holder has a lien that always survives the condo association's foreclosure. In fact, second mortgages are usually superior to the condo association's lien for unpaid maintenance fees. Usually the condo association gets stuck with owning a property with at least one outstanding mortgage with an outstanding mortgage balance greater than the actual value of the property because of the decline in real estate value. Most condo associations allow the first mortgage holder to foreclose on the property after their foreclosure is done. The main point is that in Florida a condo association foreclosure has no effect on the first mortgage.
Wiki User
∙ 14y ago
Wiki User
∙ 9y agoA creditor that has perfected its lien by a court action can take possession of a property as a result of the debtor's failure to pay their debt. An HOA that has a lien on your property for unpaid fees can take possession of your property by foreclosing on that lien.
Generally, in the case of an outstanding mortgage, the HOA would take possession of the property subject to the mortgage. However, the mortgage would remain in the original debtors name and would have an extremely detrimental effect on their credit. More often, an HOA would record their lien in the land records but not actually foreclose if there exists senior liens.
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In Florida do past due condominium association fees have a priority as to payment over a first mortgage holder in a foreclosure situation?
Your governing documents will make this clear. The state law may limit the number of month's past due assessments can be recovered. Your association's attorney can answer your question directly.
Where can someone obtain more information on mortgage rates in Florida?
Mortgage rate information in Florida can be obtained online or at a mortgage company. Zillow, Realtor, and Homes are websites that can provide more information on mortgage rates in Florida.
Is your property in Michigan exempt if you do not pay your mortgage in Florida?
Your property in Michigan would not be affected by your mortgage in Florida.Your property in Michigan would not be affected by your mortgage in Florida.Your property in Michigan would not be affected by your mortgage in Florida.Your property in Michigan would not be affected by your mortgage in Florida.
Where can you find Mortgage refinancing in Jacksonville?
There are several companies that offer Mortgage refinancing in Jacksonville. Some of these are: Jacksonville Mortgage, American Equity Mortgage, and Florida Mortgage.
What is the approximate home mortgage rate for a home in Florida?
According to information on the website BankRate, the current approximate home mortgage rate in Florida is 4.05%. This is when taking out a 30 year home mortgage.
What are Florida condominium pool rules for food and beverage?
There may be basic guidelines in Florida law, but the law that applies is based in the governing documents for the condominium association that owns the pool. There is no standard
In Florida do past due condominium association fees have a priority as to payment over a first mortgage holder in a foreclosure situation?
Your governing documents will make this clear. The state law may limit the number of month's past due assessments can be recovered. Your association's attorney can answer your question directly.
Can a homeowners association lien be superior to the mortgage in the event of a foreclosure in the state of Florida?
Your association counsel is best prepared to help you answer this specific question.
Is there a Florida law that that determines the hours of operation for a pool in a condominium community?
All condominiums -- private democracies -- operate under a set of governing documents. You can read yours (CC&Rs and By-laws, plus any board resolutions) to better understand the rules that govern your condominium pool in Florida. The Florida condominium law serves as a template for all condominiums in the state. Your governing documents are particular to your community, and they are based on Florida law. If your governing documents do not define pool operations, you can hire a Florida association-savvy attorney to help you interpret the Florida law that may apply to pool operations.
What is the maximum amount that a condo association or homeowner's association can recover via Florida's super lien statute and does it vary between HOAs and condo associations?
You have asked a complex and interesting question. It is difficult to find much information on "Super Liens" in Florida. The following is general information only and should not be construed as legal advice. If you need more detailed advice you need to consult with an attorney who specializes in real estate law in Florida.A Super Lien refers to the senior liens on a property that take priority in a foreclosure. Super Liens include the first mortgage, certain taxes and certain condominium liens in states that grant Super Lien status.In Florida, the Condominium Act grants condominium associations a type of "Super Lien" status which makes liens superior to all other liens except certain tax liens and first mortgages. The following is an excerpt from the information provided at the related link found below:"In the condominium context, if a first mortgage holder files its own mortgage foreclosure lawsuit and the property is sold at public auction, depending on who buys the property the association may recover all, some or none of the past due assessments from the new owner.If the first mortgage holder or its assignee purchases the property and the mortgage was recorded on or after April 1, 1992 or the Declaration of Condominium automatically incorporated statutory amendments then the mortgagee/purchaser is obligated to pay the lesser of the assessments, which accrued during the past 6 months or 1% of the original mortgage amount.If, however, the mortgagee purchases the property and the mortgage was recorded before April 1, 1992 and the condominium Declaration does not incorporate statutory changes then the mortgagee is not obligated to pay any of the past due assessments. If a third party bidder purchases the condominium unit at the sale then he or she is obligated to pay all past due assessments regardless of the recording date of the mortgage. Although this has always been true the Legislature recently clarified the Condominium Act to make it crystal clear that third party purchasers are obligated for all past due assessments. This can be quite a shock to the unwary bidder at a mortgage foreclosure sale of a condominium unit that owes assessments.The HOA Act does not contain similar provisions obligating foreclosing first mortgage holders to pay past due assessments. In such cases, the governing documents should be reviewed."
What are the condo fees at Grand Key condos in Tampa Florida?
A local realtor can help you understand the regular and special assessments for any condominium association in your geography. There is no standard.
Can a home owners association foreclose on a home in Florida without informing the mortgage company?
Foreclosure is a legal process whereby all interested parties are included, or the foreclosure procedure cannot be completed. If you believe that your association is foreclosing on your title, and you believe that your mortgage lender has not been informed, you can inform your lender, since the mortgage is in your name, not the association's name, and your responsibility is to protect your name.
Who pays the property taxes for a condominium unit in Florida?
If Florida is like most other states, a condominium unit owner pays property taxes for the unit.
What has the author William D Clarke written?
William D. Clarke has written: 'The young pathfinder's book of oceans, streams, and glaciers' -- subject(s): Glaciers, Juvenile literature, Ocean, Rivers 'Field data for the Isaacs-Kidd Midwater trawl collections of Scripps Institute of Oceanography' -- subject(s): Isaacs-Kidd Midwater Trawl (Ship), Monsoon Expedition, Trawls and trawling
Where can someone obtain more information on mortgage rates in Florida?
Mortgage rate information in Florida can be obtained online or at a mortgage company. Zillow, Realtor, and Homes are websites that can provide more information on mortgage rates in Florida.
Where would one look for information regarding a Florida mortgage?
The best place to find information regarding a Florida mortgage would be to locate a Realtor or bank located in Florida. There is a website called Mortgage Fit in which the details of a Florida mortgage and the laws are better explained
Where can Florida mortgage rates be obtained?
Online mortgage rates can be obtained from banks or other providers of mortgages in florida it can also be provided online from mortgage specialists located or specializing in florida
