All Forum Posts by: Anna Toi-GB

Hi,

I am interested in bidding on a foreclosure home. However, the property is located in HOA community with Mandatory Equity Membership of $25,000. My question is if I won the bid and receive Certificate of Title from the courthouse, how does the HOA force me to pay the equity membership fee? Do I inherit the $25,000 from previous homeowner? What happen if I don't pay the fee?

Hello Everybody,

As I was doing preliminary title search, I can usually find all the lien and mortgages available on Palm Beach Comptroller website. However, this particular case named Florida Department of Revenue and Clerk of the Court for Palm Beach County as Defendant. I performed the title search using the homeowner's name, spouse's name (or ex spouse) but it's not showing any interests from Florida Department of Revenue or Clerk of the Court for Palm Beach County. I also looked up the business owned by the homeowner and search for Lien against the business. But it's not showing anything. The case number is 2012CA018369. Where do you go to find out about these liens or what search query entry is required to unearth these liens?  

Contact Clerk of Court and ask about the procedure. There is a deadline. Act quickly. 

Hi,

Did you end up buying your property from Xome?

 It's within their right to pursue the difference and put a lien on the property. The work will be legally authorized and performed. 

Hello BP,

Recently my roof contractor met with an insurance adjuster for the claim that I initiated. I'm still waiting to hear back on the outcome of the claim. However, the contractor told me that the insurance company will pay for a new roof, and he will handle all the claim process and paperwork. I only need to sign "Assignment of Benefit (AOB)." A quick google search and phone call with my insurance agent revealed that this is a huge scam in Florida and it's legal. Essentially, the AOB transferred the right of the homeowner to the contractor to negotiate the claim or sue the insurance company. Additionally, the contractor collect all the proceeds from the claim payout. From what I understand, the contractor can inflate the price of the repair and bill it to the insurance company. If the claim is denied or the payout is less than the bill, the contractor can turn around and have the homeowner pay the difference. If not paid, the contractor can put construction lien on the property. 

I refused to sign it but he still pressures me into signing. Has anyone ever experienced this?

Another issue to consider is what happens to any surplus proceeds after the judicial sale brought about by the junior lienholder’s foreclosure action. Such proceeds are to be distributed among the other junior lienholders only and in order of priority. If there is a dispute over priority, the court is required to prioritize the interest of the competing junior lienholders, as well as the amounts due each. Citibank, FSB v. PNC Mtg. Corp. of Am., 718 So.2d 300, 302 (Fla. 2d DCA 1998). A senior lienholder to the foreclosure action is not entitled to any proceeds from the sale as a senior lienholder cannot be foreclosed out and its lien remains tied to the property. Surplus proceeds cannot be used to reimburse the purchaser for payments that are owed to the first mortgagee after the judicial sale. Miller v. Stravos, 174 So.2d 48, 49 (Fla. 3d DCA 1965). The dynamics of a junior lien foreclosure sale are as follows: “[t]he successful bidder at a junior lien foreclosure takes title subject to the prior liens. The purchaser takes the property charged with the primary liability for the payment of the prior mortgage and must therefore service the prior liens to prevent loss of the property by foreclosure of the prior liens.”

https://www.jimersoncobb.com/blog/2012/08/special-considerations-for-bringing-a-foreclosure-action-by-a-junior-lienholder/

The first mortgage (Senior lienholder) will not get the surplus funds. Florida Statute  45.032  states the funds will be dispersed to Subordinate lienholder, which is any lienholder junior to the foreclosing party. If there's no other junior liens, the homeowner will get the surplus funds. Not a bad deal for the homeowner for not paying mortgages and get a lump sum of money for losing the title. 

With S-corp, you need to do all the paperwork and reporting for the payroll ( quarterly filing and depositing tax withhold, annual filing, paying unemployment taxes). Also S-corp will file for 1120 while sole proprietor will file for schedule C.