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Foreclosure & Tax Deed Auctions / Answered
Statue of Limitations

If a propertys HOA lien was purchased on a courthouse foreclosure and there is a mortgage still tied to the property, does the new owner have to pay that mortgage? And, if he doesn't, is there a statue of limitations in Florida for how long that mortgage can remain or can it be extinguished through time or through court or Florida statue? Thank you!

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Posted 4 months ago
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Answers


Generally mortgage liens are superior to association liens and would survive the sale.

Auction winners would not be liable personally for the debts secured by the mortgages, but the lenders still could enforce their liens which can lead to the mortgage foreclosing on the property that was used as collateral to obtain the loan.

Mortgages don't typically ever "expire", they mature, they most often have a date they "mature" at - at this time all the amount left is due. Now depending on the state, they have a certain amount of time to "go after" the money via legal filings.

Under Ohio law, a mortgage lien is a legal claim that a lender holds over a property as security for a debt. Typically, a mortgage lien does not have a set expiration date like other types of liens, such as mechanic's liens. Instead, a mortgage lien remains valid until the underlying debt (the mortgage) is paid off in full.

There is a rare instance that is difficult to satisfy however. Under R.C. Section 5301.30 If a mortgage debt remains unpaid for more than 21 years and there's no action taken by the bank to enforce it, the lien on the property will expire. The bank can revive the claim by refiling the mortgage, but it will only be valid notice for another 21 years or until the stated maturity date of the debt, whichever is longer.

  
  
Posted 4 months ago
Edited 4 months ago
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1 Answer
4 months ago
4 months ago
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