If an HOA forcloses do they have to pay off the mortgage company?

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If an HOA forcloses do they have to pay off the mortgage company?

I own a home in FL that I do not live in. I live in TX. I have struggled to pay the mortgage but I am current. My neighbor in Florida called and said that someone was at my house changing the locks that they stated that the HOA now owns the property. First, I was never notified of foreclosure and 2nd I called my mortgage company and they were not notified either. At this point considering the housing crisis in Florida I don’t care if the HOA takes the property. Let them attempt to make a profit, they won’t.

Asked on February 16, 2011 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Generally speaking, the mortgage company has a priority lien on the home and if they were not notified in the "foreclosure" by the home Owners Association - and you were not either - then there is a huge problem here.  I know that you would like to just think that it is over with and you should just let the cards fall where they may but I caution you against that.  If the HOA sells the home - though I really don't see how they can do this all legally without notifying all the players - and they do not pay off the underlying mortgage then you are up a creek without a paddle.  Get an attorney in Florida as soon as you can to do all the leg work for you on this and to take the necessary steps here.  And tell the mortgage company as well.  They will not stand for this and maybe their attorneys will start the necessary legal suit to correct it and save you some money on fees. Your attorney can just join in on the fun.  Good luck to you.


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