Foreclosure in Wesley Chapel>Question Details

Lohofa, Other/Just Looking in Wesley Chapel, FL

My mortgage lender Wells Fargo, told me, my HOA cannot foreclose, only place a lein, is this true..the HOA said they are foreclosing, plz clarify

Asked by Lohofa, Wesley Chapel, FL Sat Jan 9, 2010

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Hello Lohofa and thanks for your question,

All of the Realtors below are correct. There are procedures that all HOAs must follow, but if a homeowner fails to pay the monthly assessments on time, the HOA may file to foreclose on the property. Because the first lien holder (in this case, Wells Fargo) is the secured lien on the property, anyone who purchases the foreclosed property must also pay off the Wells Fargo loan at the same time. In most cases, however, the first lien holder will foreclose on the property before the HOA's foreclosure takes affect, which is why Wells Fargo probably told you that the HOA "cannot foreclose" and that is because Wells Fargo would foreclose before the HOA even has a chance to do so.

Hope this helps clarify matters.

Grace Morioka
Area Pro Realty
1 vote Thank Flag Link Sat Jan 9, 2010
going through modification received summons for foreclosure but never foreclosed on. Continued to make HOA payments throughout entire process and was then billed for atty fees from HOA saying they had to hire atty to respond to the copy of the summons they recived even though I was continuing to pay hoa now I disputed the atty fees b/c I don't understand why they hired an atty to begin with when pymnts were being made... can they foreclose even though its not for past due hoa fees? (florida)
0 votes Thank Flag Link Tue Dec 17, 2013
Sorry, 1 last thing, DO NOT file Bankruptcy for this reason. That will kill you too. For 7-10 years.
People are being advised to file BK when it is not necessary all the time.
Chris Suarez
0 votes Thank Flag Link Sun Jan 10, 2010
I saw that you posted that you are willing to pay them, have you sent in any payment at all. If they cash your check, then they are accepting the payment arrangement that you are giving them. I would send them (the actual HOA not the attny) a check and see if they cash it. Again, double check w/ an attny but, I do know that this will stop their foreclosure process if that is where they are at or threatening. Same thing w/ a Foreclosure, if you send a payment and they cash it, they have to stop all foreclosure proceedings and start over. This is what I have seen and been told by others that know the process. I am not an attny but, am a Mortgage Company and deal with these questions all the time.
Chris Suarez
Suarez Home & Finance Corp.
0 votes Thank Flag Link Sun Jan 10, 2010
Read the HOA documents to deterine if they are allowed to file for foreclosure. If the answer is yes, then under Florida law they can foreclose. Seek the advice of an attorney for a legal opinion which mine is not such an opinion.
0 votes Thank Flag Link Sun Jan 10, 2010
Hi Lohofa,

Yes the HOA can foreclosure on you and in your State of Florida they have 1st right and can subornate over your lender in first position which is Wells Fargo.

Unlike California and Conneticut (answers were incorrect!)

Wells Fargo is based in San Francisco, California and may not know the legal course of action in your State of Florida that the HOA can and will subornate and foreclose on you.

If the HOA does foreclosure on you, then the lenders collateral will be forced off the property and onto you directly, other property you may own or garnish your wages.

The HOA will own the property at that point. The lender will go straight to you and your assets. You might not have assets you say? Well there is a Statute of Limitations in your state of Florida. This is 10 years and between now and then you might consider the fact that you may some-day have assets and the lender will be waiting for that day and collect then.

What should you do you ask?
If you do not want the property...Pay the HOA, it cannot be that much to bring them current and get that lien removed...

Find a fantastic realtor in your area and get a short sale pushed through. The reason that I like a short sale in places like Florida is because your have a Judicial foreclosure process there and it is the most UNFRIENDLY state to be foreclosed on. This is why bankruptcy is so popular in Florida because of the Judicial foreclosure state.

The other choice is to visit with a bankruptcy attorney to review your options if you have other credit card debt such as $100k or more you might consider bankruptcy and start fresh.

I honestly think that a Short Sale is a cleaner choice for you and pay the HOA now. Please visit the referenced website to watch a foreclosure prevention video and read over the various options you have.
0 votes Thank Flag Link Sun Jan 10, 2010
Talk directly to officers and board members of your HOA about a payment plan, as the HOA is paying for its legal fees. You can also try the management company for your HOA.

This is the same answer I gave to your earlier post.
0 votes Thank Flag Link Sat Jan 9, 2010
Bob in CT is on target. The Lender is the senior lien holder- the HOA, mechanics liens, etc. will be secondary. The only lien that is superior to the first mortgage is a Tax lien.
0 votes Thank Flag Link Sat Jan 9, 2010
They can foreclose but they will need to pay Wells Fargo if they succeed, Wells Fargo is the first lien holder. Good Luck Bob
0 votes Thank Flag Link Sat Jan 9, 2010
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