Amid rising interest rates, increasing insurance premiums, and higher association fees, many Florida homeowners are struggling to keep up with assessments. As a result, condo and HOA foreclosures are once again on the rise across the state. Unlike mortgage foreclosures, association foreclosures can move quickly and have harsh consequences for homeowners who fall behind.
How Association Foreclosures Work
Under Florida law, associations have the right to place a lien on a unit for unpaid assessments. If the lien is not satisfied, the association may proceed with a foreclosure action in court. If successful, the property can be sold at auction—even if the mortgage is current.
Homeowners may still owe their mortgage lender after the association foreclosure. This is known as a “split foreclosure” and often results in both a lost home and a lingering mortgage debt.
Warning Signs and Common Mistakes
- Ignoring notices from the association
- Assuming the mortgage lender will prevent foreclosure
- Waiting too long to seek legal or financial help
Legal Protections and Options
- Associations must provide specific notices before filing a foreclosure
- Owners may be entitled to repayment plans or settlement offers
- Legal defenses may include improper notice, incorrect balances, or violations of the governing documents
What to Do If You’re Falling Behind
- Contact the association early: Open a dialogue about repayment
- Review your rights: A real estate attorney can explain your options
- Stay engaged: Attend meetings and request account ledgers
- Explore assistance programs: Some state and local agencies offer homeowner aid
Foreclosure is not inevitable. With proactive communication, legal support, and a clear understanding of the law, many homeowners can resolve disputes and avoid losing their homes.
