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Bankruptcy Lanigan & Lanigan, P.L.
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831 W. Morse Blvd., Winter Park, FL 32789

407-740-7379

foreclosure

mortgage workouts

Foreclosure Can Be Caused by Late HOA Fees

Florida legislative response may one day protect creditors, homeowners and renters who are losing homes to a loophole that is being taken advantage of by scam-savvy investors.

Florida investors are getting title to properties by paying outstanding homeowner association fees through an opening in state foreclosure law. If you need legal guidance on a foreclosure consult with Winter Park, Florida, attorney Roddy Lanigan and Eric Lanigan who provide representation with a personal touch.

Because the housing system is under stress in Florida with banks taking years to foreclose on delinquent homeowners, homeowners and condo associations which rely on regular dues for everything from maintenance of common areas to other expenses are under stress as well.

Florida law allows homeowners associations to foreclose on properties when association fees are overdue. Associations are not required to alert the mortgage-holding banks.

Had the first mortgage holder known about the foreclosure action, it likely would have paid the outstanding balances to protect its larger financial interests, or pushed its own foreclosure along.

Florida HOAs Lose Too

Homeowners associations don’t want to have to alert the first mortgage holders. The bank gets a primary foreclosure judgment and associations usually receive nothing.

Investors holding title have little interest in maintaining the property since it will be foreclosed upon soon enough; renters are pawns in a scheme that makes them vulnerable to unwarranted eviction.

Florida Laws May Change

Florida legislation may eventually require homeowners associations to notify lenders when they move to foreclose. But not currently.

Florida Renters, Tenants Need Warning

Renters and tenants bear the brunt of issues. Tenants should be told by owners or landlords before a lease is signed that a rental property has a mortgage in arrears. A federal law gives tenants 90 days notice before eviction when property they’re renting is foreclosed on. And they can stay for the term of the lease if the new owner isn’t planning to move in.

If your home is in foreclosure or if you’re a homeowner who has a property that is being foreclosed consult with Eric Lanigan or Roddy Lanigan at their Winter Park, Florida, office. Lanigan and Lanigan, have more than 36 years of experience in foreclosure law and will be able to look at your financial situation and provide information based on what you would like to have happen.

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