5 Facts About Florida HOA Foreclosures

In the eyes of many, HOAs play a crucial role in maintaining the appearance and value of residential communities – but what happens when an HOA forecloses on a homeowner’s property is an entirely different matter. To learn more about what to do if the HOA forecloses your home, reach out to an experienced and passionate Florida HOA foreclosure attorney from Sharmin & Sharmin as soon as possible.

1. Foregoing HOA Fees Can Spell Disaster

The unfortunate reality for many residents living with Homeowners Associations (HOA) or Condominium Owners Associations (COA) is that they have an obligation to pay the fees associated with their aforementioned HOA. Failure to do so means that the HOA can take drastic measures on their home, namely, collect owed money in any way possible – even foreclosure. 

2. An HOA Foreclosure Is Completely Different Than a Bank Foreclosure

HOA foreclosures differ from regular bank foreclosures for a number of reasons, although the entire process begins with a simple lien. An HOA or COA simply places a lien on a property, simply prohibiting the owner from selling or refinancing the home. The idea is that this will strongarm the homeowner into paying their dues to the HOA one way or another. The HOA, in this scenario, seeks to recoup the outstanding lien on the property through the sale of said property.

3. Liens Can Be Contended in Florida

Only in certain states can a lien (also known as an “association lien”) be contested – Florida is one of those states. This is a statutory right in which a homeowner served with a recorded claim for money can file a “Notice of Contest of Lien” with the county land records. This is often performed with the help of an attorney who may be able to work with the HOA and other relevant parties to alleviate the impact of the ordeal on the finances of the homeowner. 

4. HOA Foreclosures can Hide the True Price of a Home

HOA foreclosures can have real, lasting impacts on the financial integrity of the buyers who eventually acquire the property. If someone abandons a property and owes $300,000 toward the mortgage and another $30,000 to an HOA, they may unknowingly purchase the property that is still subject to a “hidden,” outstanding mortgage – costing them thousands when all is said and done. In this case, the property would still be sold at a foreclosure price, and the new owners would not receive a clear title until they paid off the entirety of the remaining mortgage. 

5. Top-Notch Research Could Save You Hundreds of Thousands of Dollars

There are a number of scenarios in which high-level research performed by experienced Florida foreclosure defense attorneys could help save you and your family thousands of dollars. Doing background research on an HOA before purchasing a home, contesting a lien, preventing an HOA foreclosure, and investigating the risk of purchasing a home that could be the victim of an HOA foreclosure are all potential benefits to employing the help of a lawyer. Call an attorney from Sharmin & Sharmin today to learn more at (844) 742-7646, where we offer free consultations.