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Mortgages Surviving HOA Foreclosure

In a Florida HOA foreclosure, if a second and third mortgage holder were not named or served as defendants in the foreclosure lawsuit, do their mortgages survive the HOA foreclosure sale?

Thank you.

Posted 24 days ago
  
  
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Local Agent

Georgina Flores

Dalton Wade Inc

(305) 302-2419

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Answers


Hola Georgina

Yes, they survive. If the second and third mortgage holders weren’t named and served in the HOA’s lawsuit, the foreclosure basically didn’t touch them, and their mortgages are still on the property. So whoever bought it at the HOA sale got it with those two mortgages still attached. That buyer would have to file a new case to wipe them out, and the lenders could still choose to pay off what’s ahead of them to protect their position. The one exception is if those mortgages were recorded after the HOA filed its lawsuit. In that case they’d be wiped out even without being named. Bottom line: always check that every lender was named before bidding on an HOA foreclosure.

Good luck!

Posted 18 days ago
  
  
Fernando Alonso
415 × 3
Pro Member
230 Views
1 Answer
24 days ago
18 days ago

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