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Answered
AFFIDAVIT AND NOTICE OF INTEREST IN REAL PROPERTY

Greetings, I came across a property which had an AFFIDAVIT AND NOTICE OF INTEREST IN REAL PROPERTY filed the day after final judgement and 2 years after the lis pendens was filed. I was wondering if there was any validity to that affidavit and if it would make it impossible to obtain a clear title and/or title insurance?

Thanks
Richard

Posted one day ago
  
  
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Answers


Ahh, the "Fuck you Affadavit" - as a wholesaler many moons ago, I would file these on my deals in case the buyer tried to sell it behind my back. They are quite the stinky documents, and in the couple cases of a seller trying to sell it out from under me, I would get a phone call from the title company asking me to release it, to which I would explain, "sure, for $5k I would be willing to release my interest after all the work I did on the deal and your seller renigged on it behind my back"

Now forelcosure auctions are different that just a regular sale, and I had fun researching an answer for your post, I will give you the article I basically created with my robot friend that I may post in the near future.

**This is not a substitute for legal advise, I am not an attorney!
**

Do County Foreclosure sales clear affadavit of interests filed after the final judgement:###

Under Florida Statute § 48.23, the recording of a Notice of Lis Pendens constitutes a bar to the enforcement of all interests and liens unrecorded at the time of filing, provided the case is prosecuted to a judicial sale.

The Rule: If someone records an "Affidavit of Interest" after the Lis Pendens was filed (and especially after a Final Judgment), they are legally "bound by the proceedings" as if they were a party to the suit.

Naming the Party: No, the plaintiff does not need to name a person who recorded an interest after the Lis Pendens. The law essentially says, "You were warned by the Lis Pendens; if you didn't intervene in the case to protect your interest, you lose it at the auction."

2. Does the Auction "Drop" the Affidavit?

Legally, yes. When the Clerk of Court issues the Certificate of Title after a foreclosure sale, all junior interests—including those filed after the Lis Pendens—are technically extinguished (discharged).

However, there is a difference between legal extinction and a clean title:

The Cloud: Even if the interest is legally void, the affidavit still exists in the county's Official Records. It is a "cloud" because it is a recorded document that a title examiner will see.

Title Insurance: This is your biggest hurdle. Title insurance companies are risk-averse. Even if they know the law says the affidavit is void, they may refuse to issue a "clear" policy until that affidavit is formally removed via a Quiet Title action or a recorded Release/Cancellation from the person who filed it.

3. Validity of an Affidavit Filed Post-Judgment

An affidavit filed two years after a Lis Pendens and the day after a Final Judgment is almost certainly a "wild deed" or a bad-faith attempt to stall the sale or extort a settlement (sometimes called "title hijacking").

Validity: It has almost zero legal validity against the foreclosing lender or the winning bidder at auction.

Slander of Title: In Florida, filing a false or frivolous document to cloud a title can subject the filer to a lawsuit for Slander of Title, which carries heavy financial penalties.

What you will happen and what you should do next:

Because this affidavit was filed after the Lis Pendens and after the Final Judgment:

The Auction wins: The judicial sale will legally discharge the interest.

Title Insurance will be tricky: You will likely find that a title company will "except" this affidavit from your coverage (meaning they won't protect you if the person sues you) or they will require you to clear it up before they issue a policy.

Potential Solution: Often, the winning bidder must file a "Motion to Strike" the affidavit in the foreclosure case or file a separate, short Quiet Title action to "scrub" the public record so a title company is satisfied.

Important: If you are planning to bid on this property, factor the cost of a Quiet Title action (usually $2,000–$5,000 and 3–6 months) into your bid price, just in case the title company refuses to ignore the affidavit.

Posted one day ago
Edited one day ago
  
  
Damon Simon
207 × 5 Administrator
  
  

Wow! that was a fantastic explanation. Thank you very much!

Richard Vasquez   one day ago Report
  
  

An excellent and interesting question deserved an equal response, have a great weekend!

Damon Simon   one day ago Report
  
  

Thanks. You have a great weekend as well!

Richard Vasquez   one day ago Report
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