i purchased a first mortgage at the auction foreclosure sale in miami,previously the association has become owner via certificate of title(this is how they became owner),the association did not collected no judgment money from the sale because no one bid,now the i am the new owner,the association want me to paid that deficience judgment from previouly owner,is this correct?what about monthly payment after the assocition became owner do i have no paid them?
Barbara Billiot StageForeclosure AttorneyOrlando, FLFL licensed ·
The association has the duty to pay the past and current assessments once they take title to the property, just like any other owner. The problem you will face is the potential legal expenses in resolving this dispute. Sometimes it's cheaper to pay money you don't owe rather than the legal expenses.
Fla. Stat. 718.116 states:
(1)(a) A unit owner, regardless of how his or her title has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments which come due while he or she is the unit owner. Additionally, a unit owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the owner may have to recover from the previous owner the amounts paid by the owner.
However, section (1)(b)2. states "An association, or its successor or assignee, that acquires title to a unit through the foreclosure of its lien for assessments is not liable for any unpaid assessments, late fees, interest, or reasonable attorney’s fees and costs that came due before the association’s acquisition of title in favor of any other association, as defined in s. 718.103(2) or s. 720.301(9), which holds a superior lien interest on the unit."
This second section provides protection for the association from having to pay the assessments due to a master association, but is often misunderstood as providing the association does not have to clear up its own assessments when it forecloses.
You should consult with a condo lawyer in your area to make sure there is nothing in the Declarations or Bylaws that would affect your protections.
I generally agree with the other attorney. If I understand you correctly, the association foreclosed its lien and acquired title, subject to the mortgage. The mortgage company then foreclosed and you became the owner. As far as any association dues that were owing prior to the association acquiring title, they were foreclosed by the association and it would be improper to seek them. As for the association not paying association assessments when it was the owner, technically speaking I believe they can say you are obligated as the new owner, but so are they. If they recovered any money during that time by renting the property, then all the rent should have gone first to pay the association dues for that property, and that fact would really help you. In any event, I know of no case deciding this issue, but believe a court would say that the association is primarily responsible for the assessment, or that the merger of title and right to assessed during the time the association was the owner, bars the association from recovery. The fact you are in Homestead brings to mind a similar case I dealt with and I am wondering if it is the same association. My client actually purchased during the association's lien foreclosure, and has paid assessments since. Now that the bank is foreclosing the mortgage, the association is trying to make it look like my client never paid, or still owed from before the association's foreclosure so that they could improperly collect from the buyer at the bank's foreclosure sale.
