Florida Real Estate - Homeowner Fees - The Hull Truth - Boating ...

I am in the title and FC business, although I deal with Fannie not Freddie. In Florida there is a statute that protects the new owner if title is taken via FC sale or Deed IN lieu of the transfer is done properly. The Seller Freddie is responsible to pay, however the HOA is only entitled to 12 months of regular payments or 1% of the Original Mortgage whatever is less. The Title company handling the transaction on the Freddie side should have a curative person that is negotiation the HOA or they may have already paid it and started regular payments. .

Here is the Statute for your reference

The relevant portion of 718.116 states the following:
The liability of a first mortgagee or its successor or assignees who acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee?s acquisition of title is limited to the lesser of:
a.?The unit?s unpaid common expenses and regular periodic assessments which accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or
b.?One percent of the original mortgage debt. The provisions of this paragraph apply only if the first mortgagee joined the association as a defendant in the foreclosure action. Joinder of the association is not required if, on the date the complaint is filed, the association was dissolved or did not maintain an office or agent for service of process at a location which was known to or reasonably discoverable by the mortgagee.

The relevant portion of 720.3085 states the following:

Notwithstanding anything to the contrary contained in this section, the liability of a first mortgagee, or its successor or assignee as a subsequent holder of the first mortgage who acquires title to a parcel by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee?s acquisition of title, shall be the lesser of:
1.?The parcel?s unpaid common expenses and regular periodic or special assessments that accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or
2.?One percent of the original mortgage debt.

Source: http://www.thehulltruth.com/florida-georgia/463813-florida-real-estate-homeowner-fees.html

bruce weber