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.

And you'll never get to the exact dollar amount as the mortgage value, as there is accrued interest, legal fees, escrow advances etc in addition to the mortgage balance.

I believe holding real estate in NJ will pay off far more than the rental cashflow I could have accrued elsewhere (except STRs).Currently, all my investments in NJ are MTRs. 

Again, filters out the jokers.You're supposed to give the tenant the interest accrued after each year or let them deduct it from the rental payment on each 12 month anniversary.

All in all the distributions were paid slightly lower than initially expected while the remaining is accrued. 

Next we would look at the accrued interest and legal balance that we are "inheriting", and whether there is enough spread there to pay close to principal, and finally the foreclosure timelines of the state (which dictate how long it might take to get to resolution), as well as various factors that could influence the likelyhood of a BK and its outcome (for example does the property generate income that would allow the borrower to easily make lender protection payments).

A tenant took me to court for this issue, what i found out is that you can keep it in any account you wish but you have to notify the tenant (in writing) of the location and rates they will be accruing.

As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month.

the benefits, like debt paydown and appreciation, accrue over time.

the benefits, like debt paydown and appreciation, accrue over time.