When it comes to foreclosures, many Homeowners, or former Homeowners, will say that they are initiated by a Mortgage Lender due to the non-payment of their mortgage. However, one type of foreclosure that is rarely talked about is Homeowners’ Association Foreclosure. In Florida, there are an abundance of Homeowners’ Associations but what many Homeowners don’t know is that Homeowners’ Associations, just like Mortgage Lenders, have a right to foreclose on their homes for the non-payment of past due assessments. Florida Statute 720.085(1)(c) specifically states that “the association may bring an action in its name to foreclose a lien for assessments in the same manner in which a mortgage of real property is foreclosed and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien.”
For former Homeowners’ who have had their homes sold at a Florida Homeowners’ Association foreclosure sale, or are facing an upcoming Homeowners’ Association Foreclosure sale, allow me to be the first to say that there may be light at the end of the tunnel. I say this because there is a chance that there may be what is commonly known as “Surplus Funds” available after said foreclosure sale of your home. According to Fla. Statute 45.032(1)(c), Surplus Funds “means the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.”
For example: If there is a final judgment of foreclosure entered against a Florida Homeowner, in their Florida Homeowners’ Association Foreclosure Court case, in the amount of $20,000 and the Florida property is sold at foreclosure auction for $60,000, then there will be a surplus of funds in the amount of $40,000! As the former Homeowner, or legal titleholder, at the time of the recording of the Lis Pendens by the Homeowners’ Association you are “entitled” to these surplus funds, per Fla. Statute 45.032(2).
If you are a former Florida Homeowner and believe that there may be Florida Homeowners’ Association foreclosure surplus funds available to you, please give me a call and I will personally give you a free consultation. During our consultation, I will confirm whether or not there are surplus funds available to be claimed in your case and what the claim filing process will be like for your specific case as each case is different and requires the utmost planning and care
At Haynes Law Group, P.A., we have experienced Attorneys who are well versed in the Florida Statutes governing former Florida Homeowners claims to Homeowners’ Association foreclosure surplus funds and have helped to claim hundreds of thousands of dollars for former Florida Homeowners. We represent former Homeowners all over the state of Florida, no matter what county they are in, and will work tirelessly to ensure that you receive the Gold Standard of Legal Service. Best of all, we represent our Clients on contingency which means we don’t get paid unless you do!