Hello, I live in the Orlando, Florida area and recently purchased a home at a foreclosure auction at the courthouse. The bank foreclosed the mortgage, listing the previous owner as well as the homeowner's association as a defendant. We purchased the home for less than what was owed on the mortgage. We were under the impression that since the homeowner's association was referenced on the judgement (and notified of the sale) that any HOA liens or bills owed by the previous owner would be wiped out. Now the HOA is telling us that we are going to have to pay several thousand dollars in back HOA bills owed by the previous owner. Please advise.

You're going to have to read the HOA's CC&R's very carefully. In some cases a foreclosure will wipe out the arrears, but not always. It will say so in the CC&R's.

Lisa,

Thank you so much for your answer! I reviewed the association Covenants and found the following paragraph:

"The sale or transfer of any Unit pursuant to foreclosure of the first Mortgage shall extinguish the lien as to any installments of such assessments due prior to the Mortgagee's foreclosure. The subsequent Owner to the foreclosed property shall not be personally liable for assessments due prior to such acquisition of title. Such unpaid assessments shall be deemed to be Common Expenses collectible from Owners of all Units subject to assessment, including such acquirer, its successors and assigns."

I responded to the HOA accountant in writing quoting this section and paragraph. I hope this works!

Thanks again!
Brenda

That's exactly what you should have found. :)

Good luck!