What can the condo association or HOA do to recover past due assessments if it forecloses on its lien and takes title?
Pursuant to Florida law, the association as the owner can sell or lease the unit. In the vast majority of cases, however, the property remains encumbered by a first mortgage lien making a sale at market value impossible unless the mortgage can be eliminated with the assistance of legal counsel. Regardless, the condo association or HOA is free to lease the unit at market value. Any repair and maintenance costs can be assessed to that individual property and likely be recovered from the future owner. If the board is considering this option, it should work with its legal counsel on the appropriate lease and consider the impact of any pending bank foreclosure.
Related Questions
- If my condo or HOA forecloses on its lien for unpaid assessments and takes title to a home, is the association responsible for the mortgage payments?
- What debts and other obligations will fall on the condo or homeowners association if it forecloses on its lien for unpaid assessments?
- How does our association protect its legal right to recover past due assessments from our member owners?
