Foreclosure and HOA liens

3 Replies

Good morning.

If someone can help me with this question.

If I buy a property in a county foreclosure sale when the plaintiff is an HOA, what happen to the mortgage or other loans attached to the property.

Thank you...

@Ivan Armas Who has "first" position? I've seen some where the HOA is in the first position and some where the mortgage people have 1st position, it all depends on who is first. Of course, they all want their pound of flesh.

Originally posted by @Ivan Armas :

Good morning.

If someone can help me with this question.

If I buy a property in a county foreclosure sale when the plaintiff is an HOA, what happen to the mortgage or other loans attached to the property.

Thank you...

It depends on the state but in many cases, the mortgage liens survive. The HOA has the property subject to those liens. Any lender that recorded their lien after an HOA lien, deserves to lose out to the HOA. That's extremely rare. More common is the "Super Lien" status that some HOA's gain over lenders in some states. Can you get a copy of the HOA CC&R's? That usually spells out what their position is in the event of HOA default. I believe Florida is a super lien state.

@Ivan Armas Yes, the mortgages will remain attached to the property.  The first mtg always does, and if the hoa doesn't name any junior lien holder (which they never do) those will remain also.

@Ron S. Yes, I know FL is supposedly a "super lien" state, but by statute, the first mtg always survives.

@Jack Bobeck The hoa is Never in first position over a first mtg, in FL......no matter what the circumstances.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.