When homeowners fall behind on Association monthly assessments they can end up in a position where they become Defendants in a foreclosure lawsuit filed by their Association. Associations will try to force the sale of the property to recover the amounts accrued in arrears. If successful in doing so, the property will be auctioned by the clerk of Court in the county where the property is located at an electronic sale which is open to the public. If you happen to come across a property that seems appealing, do your research. The doctrine of caveat emptor which is usually translated to “buyer beware” applies to potential buyers interested in purchasing these types of properties.
Properties that are up on these websites for foreclosure auction often have other liens attached apart from the Association foreclosure lien. A lien is a charge or encumbrance imposed upon specific property, for payment of some debt or obligation incurred, that gives a creditor the right to take action on its interest in the property. When you purchase a property at a foreclosure sale, you take title to the property subject to any liens on the property. There is no guarantee that you will take title to the property free and clear. This can become a major issue for purchasers if the property is subject to a mortgage that is in default and wrapped up in a mortgage foreclosure action. Purchasers of properties at foreclosure sales do not have a right to intervene in ongoing mortgage foreclosure actions and even if they purchase the property prior to the commencement of the mortgage foreclosure action, they are limited in the defenses they can raise. “Because they purchase property with constructive if not actual notice of the fact that the property is subject to a foreclosure suit, the law treats purchasers pendente lite—pending litigation—accordingly and holds that they have no right to insert themselves into the pending litigation to which they were not previously a party.” Green Emerald Homes, LLC v. 21st Mortg. Corp., 300 So. 3d 698, 707-08 (Fla. 2d DCA 2019). If you find yourself in a position where you purchased a property at an Association foreclosure sale either before a mortgage foreclosure case has been filed or afterwards, contact us to find out what your options are. We may be able to negotiate with the bank to get the mortgage paid off, have the sale reversed, or participate in the mortgage foreclosure case on your behalf as a purchaser of the property.
Contact an Experienced Fort Lauderdale Foreclosure Defense Attorney Today
Loan Lawyers has helped over 7,000 South Florida homeowners and consumers with their debt problems, we have saved over 3,000 homes from foreclosure, eliminated more than $100 million dollars in mortgage principal and consumer debt, and have recovered over $25 million dollars on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.
