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  • Mar 10, 2010, 06:32 AM
    LivingtheLifeinFLA
    Foreclosure Condo Association
    I recently bought another property at foreclosure auction. The property was first foreclosed on by the Condo association for a fees lien.

    I believe they then rented the property as they are entitled to do. The first lien holder then sold the property at auction of which I was the successful bidder.

    What steps would you guys take next? I was think of the following:

    Contact the Condo Associations attorney and provide them with a copy of the "Certificate of Sale" from the court.

    Ask them for a copy of the bylaws, whether they rented the place out, copy of the lease, and their procedures to establish ownership (keys, etc).

    Contact the renters and inform they to make rent payments to the new owner (me).

    Does this sound logical? Also what about rent for the mid month, if I acquired on let's say the 15th and they collected for the full month? Who is entitled? What about security deposits they may have collected?

    Thanks
  • Mar 10, 2010, 07:09 AM
    AK lawyer
    Quote:

    Originally Posted by LivingtheLifeinFLA View Post
    ... Does this sound logical?

    Yes. It does seem strange that the condo association's lien was junior to the other lien, but if you are sure that's the case, go for it. Be prepared for their responding with the argument that their sale extinguished your lien.

    Which state is this, by the way?

    Quote:

    Originally Posted by LivingtheLifeinFLA View Post
    Also what about rent for the mid month, if I acquired on let's say the 15th and they collected for the full month? Who is entitled? What about security deposits they may have collected?

    Assuming your title is free and clear of that of the condo association, the tenant owes you from the date you notify the tenant of your position. The deposits are between the tenant and the condo association. Presumably the CA should return the deposits to the tenant, and you can demand new deposits from the tenant.
  • Mar 10, 2010, 07:51 AM
    LivingtheLifeinFLA

    This is Florida. The Condo Association foreclosed but didn't pay off the first mortgage.

    The 1st mortgage as Plaintiff then foreclosed and listed the Condo Association as one of the defendants.
  • Mar 10, 2010, 07:56 AM
    LivingtheLifeinFLA

    Answer:

    The Association can foreclose on its lien for assessments despite the superior first mortgage. At the foreclosure sale, no one will likely bid on the property because of the existing mortgage, and the Association will take possession with a small bid of around $100. Within a couple of weeks a certificate of title will be issued in the name of the Association, and they may seek a writ of possession. The unit will still be subject to the first mortgage, which will likely file their own foreclosure action and take possession away from the Association when you stop paying the mortgage (if you haven't already).

    Assocaition's sometimes do this with owners that are many months past due, with no end in sight. They rather sacrifice the money to remove the owner and force the bank foreclosure.
  • Mar 10, 2010, 08:59 AM
    AK lawyer
    Quote:

    Originally Posted by LivingtheLifeinFLA View Post
    This is florida. The Condo Association foreclosed but didn't pay off the first mortgage.

    The 1st mortgage as Plaintiff then foreclosed and listed the Condo Association as one of the defendents.

    Ok. Then, as I said, notify the tenants that you are now their new landlord.

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