Can Purchasing a Foreclosed Property Be Devastating for the Buyer?
In this blog, we will be discussing the Liens that survive after a Florida Homeowners’ Association’s foreclosure sale of a Florida property. First and foremost, as you may already know a Florida Homeowners’ Association is able to foreclose on a Florida Homeowner due to said Homeowner’s failure to pay their Monthly, Quarterly, or Yearly assessments in a timely manner.
When a Florida property is sold, via a Homeowners’ Association foreclosure auction, it can be truly devastating for the current Homeowner, but it can be potentially devastating for the buyer, or Third-Party Purchaser, as well.
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You are now more than likely wondering as to how a Third-Party Purchaser’s purchase of a Florida property at a Homeowners’ Association foreclosure auction can be devastating for them. Well, the reason for this is due to the other liens that may, or may not, be associated with a Florida property that will have survived the Homeowners’ Association’s foreclosure sale.
Surviving Liens After a Florida Homeowners’ Association’s Foreclosure Sale
An example of a lien that will survive a Florida Homeowners’ Association’s foreclosure sale of a Florida property is First Mortgage Liens as they are automatically attached to a Florida property as the Superior Lien when a Homeowner first purchases said Florida Property.
This is why I recommend that if you are a Third-Party Purchaser planning on purchasing a Florida property at a Florida Homeowners’ Association foreclosure auction that you always perform a title search to uncover any liens that may be associated with said Florida property.
The Importance of a Title Search
If a Third-Party Purchaser does not perform a proper title search prior to their purchase of a Florida property at a Florida Homeowners’ Association foreclosure auction, then it is possible that they may have just gotten themselves on the hook for a delinquent mortgage who, in turn, will likely file their own foreclosure action.
Thus, leaving the Third-Party Purchaser out of luck and as previously stated “on the hook” for a delinquent mortgage that must be resolved, or satisfied, prior to said Mortgage’s filing of their own foreclosure action and foreclosure sale of the subject property.
Foreclosure Surplus Funds
On the other hand, a former Florida Homeowner, who has had their Florida property sold at a Florida Homeowners’ Association foreclosure auction, may be in for surprise should they receive a Certificate of Disbursements from the Clerk of Court advising that there is what is known as Foreclosure Surplus Funds available for them to claim.
Florida Statute 45.032(2) states that “There is established a rebuttable legal presumption that the owner of the record on the date of the filing of a lis pendens is the person entitled to surplus funds…”. Thus, meaning that you as the former Florida Homeowner are entitled to file a claim for surplus funds, if any, after the recent Florida Homeowners’ Association foreclosure sale of your Florida property.
If you are reading this as a former Florida Homeowner and are seeking assistance in the filing of your claim for Florida foreclosure surplus funds after the recent Homeowners’ Association foreclosure sale of your property, then 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 as well as answer any questions that you may have. If there are surplus funds available to be claimed, then I will also provide you with a personalized strategy as to how we will go about the claim filing process.
How Haynes Law Group Can Help
At Haynes Law Group, P.A., we have experienced attorneys who are well versed in the Florida statutes governing former Florida Homeowners' claims to 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 which 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!