Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer who can assist you in your home state. Thank you.
The word “foreclosure” understandably triggers fear and anxiety in most homeowners. As a homeowner, you should understand how one initiated by a homeowner association (HOA) differs from traditional bank foreclosure.
The Fort Lauderdale foreclosure defense lawyers at Loan Lawyers want to provide homeowners facing foreclosure with practical and straightforward information about the process of homeowner association foreclosures. To learn more, contact Loan Lawyers today for a free consultation.
Why Do HOA and Bank Foreclosures Happen?
Foreclosure occurs when a lender takes back property from a borrower who can no longer make mortgage payments. When someone cannot afford to pay their mortgage, the lender is not getting back the money on the loan they provided. If the lender can foreclose on the property, it can take ownership of the house and sell it to recover money.
Under federal law, a homeowner must generally be more than 120 days past due on their mortgage payments before a lender can file for foreclosure. However, the HOA can begin foreclosure if they stop paying HOA fees.
What Are the Main Differences Between an HOA Foreclosure and Bank Foreclosure?
There are distinct differences between an HOA foreclosure process and a bank foreclosure. A bank foreclosure typically occurs when a homeowner fails to make monthly mortgage payments. After 120 days, a lender may begin foreclosure to take ownership of the property and sell it to recover losses.
HOA foreclosures are different because they involve a homeowner association. An HOA collects dues or fees from homeowners to maintain communal areas like parks, lawns, and pools. If a homeowner fails to pay these fees, an HOA can choose to recover what it is owed by placing a lien on the home. A lien prevents the homeowner from selling or refinancing the property.
The HOA can take steps to begin the foreclosure process. However, HOA auctions only seek to sell the property for enough money to recover the outstanding lien. An HOA foreclosure has nothing to do with a homeowner’s mortgage. When someone buys an HOA foreclosure, they may be surprised to find an outstanding mortgage is still attached to the property.
What Should I Do After Being Served with a Florida Foreclosure Lawsuit?
If you have been served with a foreclosure lawsuit, you should immediately contact an experienced attorney who can advise you on your options. A Florida foreclosure defense lawyer can find a solution that works for you and your lender or HOA. Navigating the foreclosure process alone rarely works out in a homeowner’s favor, so hiring an attorney is in your best interest.
Contact the Florida Debt Defense Attorneys at Loan Lawyers for Help
Loan Lawyers is a foreclosure defense, debt defense, and bankruptcy law firm committed to protecting clients’ rights. If you are being foreclosed on, contact the consumer debt defense attorneys at Loan Lawyers today for a free consultation.
- About the Author
- Latest Posts
Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
