When you win an HOA foreclosure auction in Florida, you take title to the property, but you are buying it strictly subject to any superior liens, most notably the first mortgage. Because the HOA lien is junior, its foreclosure cannot wipe out the bank's senior position. The fact that the mortgage company recorded a Lis Pendens this May means their own foreclosure lawsuit is already actively moving through the courts. If you take down this property at the HOA auction, you are not personally assuming the borrower's debt, but the property itself remains fully encumbered by that loan.

Unless you intervene, the bank's foreclosure will eventually cross the finish line and extinguish your newly acquired title. To keep the home permanently, you must either pay off the underlying mortgage in full or negotiate a payoff or reinstatement directly with the lender. Many seasoned investors use this specific scenario to acquire the HOA deed and rent the house out for short-term cash flow while the bank's foreclosure plays out. Because the mortgage is already foreclosing, it makes it a bit harder to keep the property long enough to profit.

Very experienced investors will do something like "The HOA Play" which would require you to defend the foreclosure, but it requires a good legal defense and superior understanding of how to pull it off. Again, because the mortgage is already foreclosing, it makes it a bit harder to keep the property long enough to profit.

Since this is your first purchase, you must pull a comprehensive title search to verify the exact payoff amount of that superior mortgage before you bid a single dollar. You are effectively buying a ticking clock.

Thank you so much! you sir, are greatly appreciated!
v/r
a newbie haha