Lutz, FL asked in Foreclosure and Real Estate Law for Florida

Q: Won a HOA foreclosure sale in FL. Bid is over the HOA Lien. Will the surplus funding assign to the first mortgage?

Won a county auction for a HOA foreclosure. Our bid is way over the foreclosure amount set by HOA. Want to know in this case, is the surplus funding (after paying off the HOA lien) will automatically assign to the first mortgage by the clerk of court? Or the surplus fund goes to the original owner? Thank you!

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3 Lawyer Answers
Barry W. Kaufman
Barry W. Kaufman
Answered
  • Consumer Law Lawyer
  • Jacksonville, FL
  • Licensed in Florida

A: Here's how it works: the plaintiff (HOA) is paid first, then any subordinate lienholders (subordinate to the HOA), then the foreclosed owner. The first mortgage holder (for example, the bank that holds the mortgage) doesn't get a dime.

Barbara Billiot Stage agrees with this answer

Liu "Margaret" Yang
Liu "Margaret" Yang
Answered
  • Foreclosure Defense Lawyer
  • Plantation, FL
  • Licensed in Florida

A: My colleague is correct.

Although you should definitely consult your attorney to be certain. At this time, you, the new property owner, will most likely become liable for the other liens encumbering the property.

Barbara Billiot Stage agrees with this answer

1 user found this answer helpful

A: No, the surplus funds cannot be claimed by the holder of the first mortgage. Any other lienholders and the original may claim the funds. If there are competing claims the clerk of court files a court action for a judge to decide.

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