A homeowner association can file its own foreclosure suit against a property owner in the state of Florida .The property can not be sold by the homeowner association due to the lender's lien on the property; but it can relinquish its claim in the property through the courts to request that the property title will be given back to the lender.The homeowner association is able to rent the property during this period until the title is given back to the lender in order to obtain association past dues.
For this reason a seller in distress might not be able to short sell its property to avoid foreclosure because homeowner associations and their lawyers can not negotiate their past dues like a lender that is willing to reduce their pay off.
Homeowner association throughout the State are taking legal action against both, owner and lender, enforcing this policy to recoup past dues.
Action must be taken to assist homeowners in distress being affected by this situation.Everyone has to collaborate to avoid foreclosure.There are several ways to help homeowners.One of them is that lawyers and homeowners associations lower their fees.Another way is that State Legislature can enact new laws to lift the cap limits on what a lender can be forced to pay in past due homeowner association fees; the actual cap is 12 months past due fees for a single family home, 6 month for a condo or 1% of the total mortgage,whichever is less.
We are specialists in short sale transactions.Sadly, sometimes we can not help homeowners in this terrible situation because such a situation like this one and unfotunately property goes foreclosure.If you have any idea to resolve this problem, please share it with us.
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