FLORIDA FORECLOSURE SALE hoa vs. 1st lien holder?

The HOA foreclosed on the property in Florida.
There is still another case pending against Homeowner (by the lender)
If I buy this property would the lender still be able to go against me for a mortgage satisfaction.
Also what happens if Lender’s ( 1st Mortgage ) case has been dismissed but HOA did pursue and foreclosed on the property and property is now for sale. If I win auction ( Orange County ) will I still have to satisfy 1st lien? I know if this was tax sale I would have all rights to wipe the lien by the mortgage holder, but what happens in the cases like this? Thanks for all answers !!!
THANKS FOR RESPOND, BUT QUESTION WAS IF THERE IS A FORECLOSURE PENDING ON THE LIEN ( 1ST MORTGAGE ) AND THE CASE GOT DROPPED OR LENDER WAS UNABLE TO FORECLOSE FOR ANY REASON AND THERE WAS A SECOND LAWSUIT BROUGHT BY HOA.
THEY FORECLOSED AND HOUSE ( CONDO ) WAS PUT FOR SALE. WHAT IF I BUY PROPERTY AM I STILL RESPONSIBLE FOR 1ST MORTGAGE OR I’M GETTING PUT IN FIRST POSITION ?
THANKS




2 responses for FLORIDA FORECLOSURE SALE hoa vs. 1st lien holder?

  1. loanmasterone says:

    At the foreclosure sale you would have to bid for the property as everyone else there to bid on the property. The lender would set the minimum bid to cover the balance of the mortgage loan, all back payments to include include and foreclosure or legal fees associated with the foreclosure.

    If you have lost the property through foreclosure the lender could obtain a deficiency judgment against you in a court of law for the difference between what the property actually was able sold for and what your mortgage loan balance, foreclosure fees and cost.

    Even though this is an option, most lenders do not go through this long drawn out costly procedure. Even if the lender is able to get a deficiency judgment against you, they would still have to collect this judgment.

    Faced with this judgment most in this situation would file for protection under the bankruptcy laws of the United States, thus the lender would not be able to collect, even though they would still have to pay their for attorney (s) for their services.

    Most lenders would write this loss off on their federal income tax. They would then send you a 1099 indicating you had a gain from the sale of the house during the foreclosure procedure. You would be required to pay taxes on this gain in the year in which you received the 1099. The IRS has indicated that if someone had a loss then someone must have had a gain. The IRS has deemed the former homeowner had the gain.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

  2. realtor.sailor says:

    The HOA lien is junior to the first mortgage and in order for them to file foreclosure, they would have to pay off your mortgagee. Now, your narative isn’t too clear. I presume you are the buyer. If you purchase a foreclosed property at auction you will not be responsible for any deficiencey balance. That’s between the mortgagor and mortgagee. Now, it’s possible the HOA has a lien against the property and that’s not satisifed at the auction sale. In most cases you would be responsible for satisfying the lien.

    realtor.sailor



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