This depends on the seller (the bank).
Most banks will pay maintenance fees/HOA fees until the day of closing, with buyer being responsible for the balance, whatever it might be.
FL is a judicious state with forecloure lawsuits go through the court system.
This means that all parts of foreclosure law suite have to be done "right" by the bank(s).
If the bank does not make any mistakes - they are obligated to pay 1% of loan or 12 months of maintenance fees (if condo), whatever is more, by FL law. However, I know of a condo association that successfully got 43K in unpaid fees from Fannie Mae, because the deed was passed along in a way that bypassed the law mentioned above.
I would not expect a 100% guarrantee of a clear title in case of any foreclosure (read your contract and bank addenda carefully). Often, the title is passed with exceptions. That's why it's good to have an attorney working on your side - to make sure that you are not getting a bad situation on your hands. Sometimes, it's better not to buy...
Foreclosure lawuit wipes out all mortgages and some other liens, except taxes and I've seen code violations etc left unpaid by foreclosures. Banks do pay off taxes. Some condo associations will negotiate with the seller/buyer as to how much of a discount you could get on past due fees, if for some reason the condo fees/hoas are still due. You start from the lowest number and go up to the number you are comfortable with.
Good idea to check with the city on code violations and open permits.
Some cities fees are outrageously high and require a week or more to check these for you, and some are more open and won't charge. You can also go to the condo management for a rough idea of the past dues, although most will charge a fee for this - estoppel letter fee.
I suggest to develop a good relationship with the title company lead by an attorney and have them on retainer to verify things for you - if you are in business of real estate investment.
Hope this helps,
Beachfront Realty, Inc.
When you buy a Foreclosure from a Bank (who obtained it back from an owner) a title company guarantees clean title. That is no liens or past due fees. Of course that means any liens that have been placed on the property prior to closing.
When you buy a Foreclosure at an auction on the court steps, you are responsible for any past liens or debt. So that is not recommended for a home owner without investment experience.
Yes, I have also heard about banks only having to pay the last 12 months of past hoa fees. However, I am in the process of selling a property where the HOA is collecting fees all the way back to 2007 (over 10K). So there must be an exception to the rule.
Now in the news you can read about associations sueing banks for not maintaning empty properties and creating slums.
Finally, yes an association can foreclosure on an owner for past dues.
It would be wise for you to visit a local Title company and get all your questions answered in person, most title companies are owned by attorneys or have them in staff. You can also pay a little extra and make sure your closing documents are reviewe by an attorney prior to signing them.
Hope this clears things a little. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".
La Rosa Realty
Keller Williams Realty
Talk to a Realtor about looking for liens. Depending on the auction, one may even be willing to represent you in the transaction (some pay Realtor fees).