Florida “Super Lein” Foreclosures

[Walchli Donna]

Florida is a Super Lien State. On occasion when searching the County Foreclosure site I come across an HOA Foreclosure. If I bid and win on one of these auctions and there is no other foreclosure pending, do I get Title to the property and then negotiate with the lender to assume the existing mortgage?

[Doug Smith]

I've done tons of foreclosures in FL over the past 30 years and I've picked up a handful of HOA foreclosures. If there is a superior first mortgage, the HOA lien typically does not supersede that first mortgage. You'll take title, but it will be suject to (not to be confused with the popular purchase method) the superior lien position. Other liens like tax liens, mechanics liens, and municipal utility liens will also likely still remain. It can be complex. I have tons of experience inspecial assets from inside of banks and I run a company that does, among other things, purchase non-performing loans and work them out (for all you that are trying to purchase them, we're not sitting on any right now...just saving you the question). That being said, I still use attorneys to work through them. I implore you to get a great foreclosure/creditor rights attorney with a strong real estate law background to help. If you need help with a great Florida attorney that can do that, reach out to me. Good luck.

[Chad U.]

Quote from @Walchli Donna:

Florida is a Super Lien State. On occasion when searching the County Foreclosure site I come across an HOA Foreclosure. If I bid and win on one of these auctions and there is no other foreclosure pending, do I get Title to the property and then negotiate with the lender to assume the existing mortgage?

When it is referred to as a super lien state, just means that the HOA is not entirely wiped out if the property is foreclosed on by the first lien mortgage. Essentially the HOA can collect up to 12 months of past dues. Just Google Safe Harbor Florida for more info.

And as mentioned above if you win an HOA auction, it is generally subject to the first lien mortgage.

[Ron S.]

Quote from @Walchli Donna:

Florida is a Super Lien State. On occasion when searching the County Foreclosure site I come across an HOA Foreclosure. If I bid and win on one of these auctions and there is no other foreclosure pending, do I get Title to the property and then negotiate with the lender to assume the existing mortgage?

 You get a trustee's deed from the foreclosure sale then you pay the senior lien off. There isn't any negotiation. you pay them what they tell you to pay or they foreclose and no, you don't get to assume the previous owner's mortgage.