Prior HOA extinguished fees in foreclosure?

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Prior HOA extinguished fees in foreclosure?

Jeffrey Farkas
Member since 2024 · 8 posts · 6 votes

I bought a property in a foreclosure auction. The HOA was included in the foreclosure. I have a HOA who is attempting to collect HOA fees for the period when the prior owner owned it. The HOA was served in the foreclosure and the Conformation Order extinguishes all prior amounts owed. Has anyone dealt with this?

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
1y

Very state dependent on this issue. Some states the entirety of the hoa lien is extinguished, some the entirety survivies, and some it's a 6 or 12 month claw back.

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  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    1y
    Quote from @Jeffrey Farkas:

    I bought a property in a foreclosure auction. The HOA was included in the foreclosure. I have a HOA who is attempting to collect HOA fees for the period when the prior owner owned it. The HOA was served in the foreclosure and the Conformation Order extinguishes all prior amounts owed. Has anyone dealt with this?

    Depends on the state. Some are 6 months worth, some are 12 and states like Florida it's all outstanding dues. Other states depends on the language in the CCR's.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y

    Very state dependent on this issue. Some states the entirety of the hoa lien is extinguished, some the entirety survivies, and some it's a 6 or 12 month claw back.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Jeffrey Farkas:

    I bought a property in a foreclosure auction. The HOA was included in the foreclosure. I have a HOA who is attempting to collect HOA fees for the period when the prior owner owned it. The HOA was served in the foreclosure and the Conformation Order extinguishes all prior amounts owed. Has anyone dealt with this?


    Yep. I call them and say I acquired the property on this date via foreclosure and unfortunately the HOA liens were removed and I am only responsible for X. As mentioned it depends on the state as in florida you are responsible for 12 months or 1% of value whichever is less. Also confirm if its a planned community sometimes they have multiple HOA (master and local) that this can fall under.

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  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    1y
    Quote from @Chris Seveney:
    Quote from @Jeffrey Farkas:

    I bought a property in a foreclosure auction. The HOA was included in the foreclosure. I have a HOA who is attempting to collect HOA fees for the period when the prior owner owned it. The HOA was served in the foreclosure and the Conformation Order extinguishes all prior amounts owed. Has anyone dealt with this?


    Yep. I call them and say I acquired the property on this date via foreclosure and unfortunately the HOA liens were removed and I am only responsible for X. As mentioned it depends on the state as in florida you are responsible for 12 months or 1% of value whichever is less. Also confirm if its a planned community sometimes they have multiple HOA (master and local) that this can fall under.

    Actually in Florida the safe harbor rule only applies to the lender foreclosing. If a third party buys at foreclosure they do not get this exemption and owe the entire amount.  I've been on both sides of the fence.
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  • Gina SternPro Member
    Investor · Boca Raton, FL · Member since 2019 · 1k+ posts · 160 votes
    1y

    Hi Jeffrey, In Florida, when a property is purchased at a foreclosure auction by a third-party bidder (not the bank), the purchaser is generally responsible for unpaid homeowners association (HOA) assessments that accrued prior to the acquisition of the property according to Florida Statutes. Direct message me if you need anymore advice would be happy to help!

    [email protected]561-430-2616
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    • Dan Rich
      Member since 2025 · 3 posts · 2 votes
      8mo
      Quote from @Gina Stern:

      Hi Jeffrey, In Florida, when a property is purchased at a foreclosure auction by a third-party bidder (not the bank), the purchaser is generally responsible for unpaid homeowners association (HOA) assessments that accrued prior to the acquisition of the property according to Florida Statutes. Direct message me if you need anymore advice would be happy to help!

      I am in FL with this scenario right now. Collections is stating I owe them attorney fees, HOA fees, and interest. Do you know if any of it can be disputed or is it all required to be paid based on whatever they say it is?
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Chad U.:
    Quote from @Chris Seveney:
    Quote from @Jeffrey Farkas:

    I bought a property in a foreclosure auction. The HOA was included in the foreclosure. I have a HOA who is attempting to collect HOA fees for the period when the prior owner owned it. The HOA was served in the foreclosure and the Conformation Order extinguishes all prior amounts owed. Has anyone dealt with this?


    Yep. I call them and say I acquired the property on this date via foreclosure and unfortunately the HOA liens were removed and I am only responsible for X. As mentioned it depends on the state as in florida you are responsible for 12 months or 1% of value whichever is less. Also confirm if its a planned community sometimes they have multiple HOA (master and local) that this can fall under.

    Actually in Florida the safe harbor rule only applies to the lender foreclosing. If a third party buys at foreclosure they do not get this exemption and owe the entire amount.  I've been on both sides of the fence.

     oh wow - I did not know that. That is good to know

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    1y

    It also depends upon the CCRs themselves — they can control as to priority — and the date of the assessments in question versus the date of the lien being foreclosed.

    Way too many variables for an accurate answer across multiple jurisdictions.

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