When most people hear the word “foreclosure,” they think of a bank foreclosing on a home because the homeowner did not make the mortgage payments. Many people are not aware that there are circumstances where a homeowners’ or condominium owners’ association may foreclose on a home.
When can an HOA or COA foreclose on a Florida home?
When can an HOA or COA foreclose?
Most homeowners who purchase a home in a community with a COA or HOA must pay assessments and fees. If you do not pay, the COA or HOA can exercise several powers to attempt to compel you to make your payments.
Most associations will first attempt to collect your debt by making phone calls and sending letters. If that does not work, they may revoke your privilege to use common areas or sue you to collect your debt.
Most COAs and HOAs can get a lien on your home if you do not make your payments. If you still do not pay, the association can foreclose on the property and force a sale to satisfy the lien.
What Florida law allows HOAs and COAs to foreclose?
Chapter 720 of the Florida Statutes gives HOAs the power to foreclose. Chapter 718 applies to COAs. Under these statutes, the association must provide you with notice before it files a lien. The association can add late charges, costs, interest and attorney’s fees to your debt. If the association decides to foreclose, it must provide you with notice first.
If you are facing foreclosure on your home by a COA or HOA, you may be able to assert a defense or negotiate a settlement of your debt to avoid losing your home.