We want to foreclose now, how long does it take?

If the lien was filed in a timely manner and there are no defenses raised by the unit owner, a textbook foreclosure could take as little as seven (7) months. Because of recent changes in the Florida Statute, fifteen (15) days longer for homeowner associations, see “Changes for Homeowners Associations”.

Three (3) Likely scenarios in most foreclosures:

1. Assessments fees, Attorney fees, late fees and all other cost associated with foreclosure are paid to the Association.
2. The Association takes title of property at the public foreclosure sale.
3. The defaulting owner files for bankruptcy.

The Association is legally entitled to collect all costs associated with forced foreclosure due to “failure to pay” assessments. Here’s a list of some possible charges; Claim of lien charge, clerk of court charge, filing a lawsuit, defendant fees, title search on the unit, delivering the complaint to the defendants, notice of sale costs, notice in local newspaper and clerks fee for the sale and documentary stamps for title.

The unit owner can pay at any time during these proceedings. The result turns into a “wash,” the Association is paid back assessments with all associated costs which terminates of the lawsuit.

The Association may choose to take title of the foreclosure property as an investment. In some cases where the equity of the property is not worth selling, the Association applies rent money to pay for back assessments until the property value increases. Once the property has gained in value, the Association would be able to successfully sell, recapping all connected costs.

A bankruptcy puts an automatic stop on first mortgages and also interrupts or imposes a federal “stay,” on association’s foreclosures. If the defaulting unit owner were a primary resident, then the owner would mostly be able to stay. However, the Association can still lien the property.

For sequenced posts see, “Part I; Collection Procedures for Condominium & Homeowner Associations” and “Part II; Collection Procedures for Condominium & Homeowners Associations” and lastly but not directly related “Directors & Officers is a Thankless Job”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new important posts. Please subscribe to our community. Or our complimentary email services.