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.
Area Pro Realty
Suarez Home & Finance Corp.
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.
This is the same answer I gave to your earlier post.