Buying property on court foreclosure with lien and mortgage
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Buying property on court foreclosure with lien and mortgage
I’m interested in buying a house on court auction foreclosure in Florida. Reason
for the foreclosure is HOA lien, but there is also a mortgage. If I buy the house
on the auction, the money will be used to pay the HOA lien, but what will happen
with the mortgage, do I inherit, and will I have to pay that mortgage?
Asked on September 28, 2018 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
The security interest in the mortgage goes with the house. If the mortgage is not paid, the lender can foreclose (take the house, which was provided as security to ensure payment of the loan). While they cannot sue you personally for the money, since you were not a signatory to the mortgage, you can and will lose the house if the mortgage defaults (is not paid).
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