In today's real estate market, home buyers are finding deals on homes that have been foreclosed upon by the neighborhood's homeowners association (HOA). HOAs in Florida have the legal right to place a lien on a homeowner's property if the homeowner is delinquent in paying the HOA fees, no matter how small the delinquent amount. This gives the HOA the right to foreclose on the home and sell it at an auction in order to acquire the minimal amounts that the homeowner owes in fees.
The HOAs are selling these properties very cheap at an auction because they usually only need to recoup a few hundred dollars in delinquent fees. But most home buyers do not realize that when a HOA forecloses upon a home it does not extinguish the lien that the lender has on the property. Many of these home buyers are finding out the hard way that even if they buy a home at a foreclosure auction the lender can still foreclose on the home subsequently. In some cases, the lender will not even deal with the new homeowners because they are not the individuals named on the mortgage.
Do not let this happen to you. If you are considering buying a home that has been foreclosed upon by an HOA, contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer prior to purchasing the home.
