And Your Association Thought Foreclosure Was Bad? The Consequences of Tax Sales & Tax Deeds For Community Associations (FL)

It is a scenario familiar to every association: an owner falls behind on his or her assessments and doesn’t get current, and the association initiates the lien recordation and foreclosure process. However, before the association can foreclose its lien and move the property to foreclosure sale, the mortgagee of the property files suit to foreclose its mortgage lien. Then, when the mortgagee moves the property to foreclosure sale, no one purchases it, and the association is left high and dry, collecting only the safe harbor amount due by the mortgagee, a mere fraction of the outstanding assessment balance. Many associations usually view this as the worst-case scenario for collection of unpaid assessments.   Read the article…………..