Hola Fernando
What you’re going through is actually very common in HOA foreclosure situation, I’ve been through it several times myself. Banks often refuse to provide information about the old loan or the mortgage balance, citing “privacy” or “compliance” restrictions. The issue is that the people handling these requests usually don’t understand the legal rights that apply once ownership changes. They just follow what their computer screen tells them. Even though, as the new owner, you’re legally entitled to know and satisfy any outstanding lien on your property, they deny access because you weren’t the original borrower.
The truth is that, as the current legal owner, you do have the right to demand the mortgage payoff amount and the instructions to satisfy it, and there are specific laws that obligate them to comply. In Florida, this is clearly covered under Florida Statutes which requires the lender or servicer to issue a payoff or estoppel letter within 14 days of a written request. That letter must include the full unpaid balance and the procedure for payment. If you’re not the original borrower, you simply attach a copy of your recorded deed as proof of ownership, and they are legally required to respond.
In simple terms, if you’ve formally requested the payoff amount and they ignore or refuse to provide it, they can’t legally charge late fees, penalties, or accelerate the debt. The law sees that as the lender frustrating your right to cure, not as your default.
If you’ve tried all informal routes, my recommendation is to send them a certified letter (ideally reviewed by an attorney or drafted with AI assistance), addressed to their Mortgage Department, citing Florida Statutes (701.02 and 701.04 I think, maybe others). State that you are the legal property owner, attach your deed, and that you’re requesting the payoff statement in good faith as required by law. Warn that failure to provide it or to accept payment in accordance with that payoff violates both state and federal law, and that any additional fees or acceleration will be considered unlawful.
If that letter doesn’t work, then your attorney can file a short petition in court to compel the payoff and obtain a court order requiring the lender to comply.
It’s frustrating, I know. You’re trying to pay and clear your title, and you’re met with automated answers from people who have no idea what the law actually says. But you’re on solid legal ground. Florida law and federal lending regulations are clear: once you request the payoff, the lender must respond, and they can’t punish you for trying to do the right thing.
Buena suerte Fernando.
Disclaimer: I’m not a lawyer, and this is not legal advice, just a personal recommendation based on experience. I strongly suggest consulting a qualified attorney first for proper legal guidance.
Grateful, Fernando
Thank you very much for your thoughtful response to my question. I appreciate the time and consideration you have taken to answer me. Your words were very valuable, and I am pleased to continue this communication. I recently read your book, Investing in Foreclosures in Florida, which I recommend to the participants of this distinguished group of investors.
Returning to the Morgate case, I have sent certified letters and emails to the banks without receiving a response. Actions will need to be discussed with the attorney.
Best regards.
Fernando
