Can a Homeowner's Association Foreclose on my Florida Home?
Many Florida homeowners are surprised to hear that their homeowners or condo association can put a lien on the property and foreclose on that lien. As a Florida foreclosure defense attorney, it can be difficult to fight a homeowner or condo association if they have their "ducks in a row." However, many times the Association can be caught overreaching or overcharging. When a homeowner signs to buy a property where there is an association, the buyer must purchase with the understanding that he or she is doing so under the covenants and restrictions set forth by the Association. Failure to pay assessments that come due is a breach of those covenants and an allowable remedy under Florida law is for that entity to file a lien against the property and if that lien is not satisfied, then to foreclose on the property.
Can a homeowner or condo association require me to pay attorneys fees and foreclosure costs to release or satisfy the lien? The answer is yes as long as it is reasonable. Many times the Association will have a small or minimal assessment but the attorney's fee will be 3 or maybe even 4x that fee. This could be deemed as reasonable based on the case circumstances but it could also be deemed outrageous. However, attorneys fees and costs are not supposed to be added on to the "lien" being filed, only past due assessments. Florida statute 720 governs homeowner's associations and their ability or inability to charge certain fees.
What happens if foreclosure is filed? If the bank files the foreclosure, the homeowner will still want to stay current on assessments that come due. If not, the association can file the lien and look to foreclose if the bank is drawing the time out. If the association is the party filing suit, then they will typically suspend the foreclosure case if the homeowner agrees to workout a payment arrangement. Some will suspend interest during the payback period and some will charge "attorney monitoring" fees which seem a bit outrageous. It just depends on each association.
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Greg Gilbert
Keith Maynard
