Closed the other day on a bank owned property. I have read and been told different things about unpaid HOA fees from the previous owner. Anyone know where I can find the info for Florida?
It depends on your contract.....typically reo’s are sold free and clear, with title insurance. However, some are sold subject to outstanding code violation liens, hoa debts, etc.
The law doesn’t dictate this, your contract does. The only law that “may” come into play is how much the foreclosing Bank owes the hoa to settle the debt, before they sell to you. The bank only has to pay 1% of the original loan balance, or 12 months of dues, whichever is less as Full settlement of the debt. If the bank did this, and the hoa is trying to come after you for additional money, tell them to pound sand. Some hoa’s will try this just to see if they can get something extra.
Now, if you are talking about buying at the actual foreclosure auction, you inherit the full hoa debt, whether a lien was recorded or not.
This is super helpful! Thank you so much @Wayne Brooks
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