Posted by Rich-CA on February 03, 2009 at 16:44:14:
gets the deed since the mortgage, would survive otherwise and your friend may still be on the hook to pay it off.
HOA lien position in Florida? - Posted by R. Kim
Posted by R. Kim on February 02, 2009 at 16:54:01:
I have a friend who owns an investment property in Florida that is wayyyyy overleveraged. The Home Owners’ Association (HOA) in her subdivision did a bad job of upkeep so she stopped paying the HOA dues and now owes them about $1900. The HOA has threatened to initiate forclosure on her property. But a bank holds the first mortgage position at about $187,000. Her townhouse is now only worth about $110,000 because of the big drop in house values there.
If the HOA forecloses, does the HOA take a superior position over the 1st lien holder, i.e., the bank or is the HOA in a junior position to the bank and must pay off the bank if they foreclose?
My friend is thinking of just giving back the townhouse to either the HOA or the bank as a deed-in-lieu. Keeping in mind that she owes the HOA about $1900 and the bank about $187,000, Would it be better to give the townhouse back to the bank to prevent a $187,000 judgement from being put on her?
If she succeeds in giving back the townhouse and gets the $187,000 waived from deficiency judgement, can the HOA still put a $1900 judgement on her personally? I’ve never heard of a HOA putting a judgement on a person, just on a property.
Do HOA lien laws vary from state to state? Are there some states where the HOA is granted “super lien” status and jumps ahead of the 1st mortgage holder?
TIA.
–
Bob