HOA foreclosure in Florida catches many homeowners off guard. A homeowners’ or condominium association can place a lien for unpaid assessments, interest, late fees and attorney fees, and then foreclose on that lien, even when the mortgage is current.
The process follows Florida Statutes Chapter 720 for HOAs and Chapter 718 for condos. Before filing suit, the association must send notices, including a notice of intent to record a lien and a notice of intent to foreclose, with set waiting periods. Once a foreclosure suit is filed, fees grow quickly, and the balance owed can become much larger than the original assessments.
Florida’s homestead exemption doesn’t stop an HOA foreclosure. Associations’ liens are among the exceptions that can reach a homestead, because the owner agreed to the recorded covenants.
Bankruptcy can help. Filing triggers the automatic stay, which stops the foreclosure sale while the case is open. In Chapter 13, the homeowner can catch up the past-due assessments over a three- to five-year plan while keeping the home. That’s often the strongest tool when the arrears are large. Chapter 7 may discharge personal liability for past dues in some cases, but the lien generally stays on the property, and assessments that come due after filing still have to be paid.
Bruner Wright, P.A., a Tallahassee bankruptcy firm, notes that timing matters. Acting before a sale date gives the most choices. Once a sale is completed and the certificate of title is issued, the options narrow sharply.
Homeowners facing an HOA lien should gather the association’s notices and payment history before speaking with counsel.
*This article is general information and not legal advice. Every case is different, and no outcome can be guaranteed. Bruner Wright, P.A. is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.*