Foreclosure On HOA Parcels In Florida

Many people are unaware that in some extreme cases, a Florida homeowners’ association (HOA) has the right to foreclose on a parcel if the homeowner does not pay their association dues. Most of the time, an HOA and a delinquent owner will be able to work out a payment plan or another arrangement, but in rare cases where communication has broken down, foreclosure is seen as the ‘nuclear’ remedy.

Liens Must Be Satisfied

Foreclosures generally initiate as a result of liens being placed on a property. A lien is an obligation placed on a property as collateral for an unpaid debt, and if more than one exists, there is an order of priority as to which liens are satisfied first. HOA liens are slightly different in that in many associations, a lien is placed on a parcel at the time of purchase, as a guarantee of payment. Most liens are only placed after the property owner is found to be delinquent in their obligations.

Because the lien is already on a HOA member’s property in most cases, it is an incentive for them to pay their obligations, either as dues or assessments. If there is a fundamental disagreement between the homeowner and the association, however, the homeowner may rack up significant amounts of unpaid dues, plus fines, which the association does have the right to levy in addition to the original amount owed. Still, the process can be complex on both sides.

Possible To Contest The Lien

If a homeowner in your association is delinquent in their dues or assessments, the association will likely employ traditional collection methods to recover the debt, and only resort to more stringent measures if these are unsuccessful. One common method by which an association may force payment is by denying the delinquent owner the right to use any amenities, such as a pool or health club complex. Beyond that is usually when an association will go to court to enforce the lien on the owner’s property.

It is possible for the homeowner to contest the lien, after which the association must respond within 90 days or the lien is void. If the association does respond in time, Florida is a judicial foreclosure state, meaning that the foreclosure must still go through the court system, as opposed to in other states where it can happen without a court order. Every case is different, but the right attorney can help ensure your rights are protected if you find yourself in this situation.

Contact A Tampa HOA Attorney

No one likes paying HOA obligations, but they are part and parcel of the contract signed when one purchases a home in an association. If you are potentially facing foreclosure in your HOA, contacting a Tampa HOA attorney from the Seward Law Office may be a good first step to ensure your rights are protected. Contact our office today at 813-252-6789 to schedule a consultation.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/Sections/0720.3085.html