The bank after foreclosure - when they take title to the property will be responsible for the HOA dues Homes 1yr max and Condos 6 months max

My experience with bank owned foreclosures, which engulfs the majority of my business, has taught me well to check, double check, and triple check any and all pending expenses that could possibly exist on the seller side. You and your agent, who is hopefully working for you exclusively and NOT the listing agent working for the bank, should include all, but not limited to the following, in your research and insist they be included on the closing statement to be paid by the seller/bank.
-utilities
-property taxes
-all liens
-association fees
-assessments
Great question!

Kim

Disclaimer: I am a licensed real estate broker and property/casualty insurance agent in the State of Ohio, providing information and sharing experiences acquired over 15 years in the industries. I do not profess to be qualified to give advice in any other field, though will share opinions and information obtained during my course of work. It is always highly recommended that consumers seek counsel from a specialist in each area in which there is a question or concern.

Hi Wendi:

Great Question!

I had to deal with this very issue last month on 2 of my Condo Listings which Sold thru the Foreclosure Process in West Palm Beach.

For reference, The Florida Statutes Chapter 718.116 deals with this issue from the legal standpoint of who is responsible for the Outstanding HOA and Condo Fees after a property is foreclosed upon . The Statute Basically states that the lender's(owner's) responsibility is limited to 12 months of back HOA Fees and 6 Months for Condomnium Fees, provided the HOA or Condo was enjoined in the Foreclosure action by the lender. The Date used for calculating the figure was the Sherriff''s Sale Date, back 6 months(for these Condos).

The attorney for the Condo Association informed the Lender's Attorney(closing agent) that they intended to seek payment in full for the 2 years outstanding CONDO Fees , from the bank, former owner and any subsequent Owner( new buyers) thereby effectively creating a Title Defect preventing the Bank from closing the sale of the units to the new buyers.

The Statute does not address the issue of subsequent owner's being responsible for the payment of any outstanding fees and is fairly clear that it applies only to former and current owners, however, the threat of continued legal action effectively ended the discussion as the Title Insuror would not issue an Owner's Title Policy to the New Buyer's without payment of the disputed amount in full.. ..The long and the short of it was, the bank finally conceded and paid over $9000.00 in Condo Fees( as opposed to the $3900 statutory limitation on liability).

The legal correctness of the Association's Attorneys Assertion that they Intended to pursue the outstanding fee's was at best a clever negotiating tool, as the association's attorney's had not even filed the necessary Claim of Lien against the former owner nor pursued collections.... which, had this matter been challenged by the Bank in Court, might have gone differently for the Association... but that's just my opinion, & I'm not an Attorney..

Every situation is different and unique so check with your attorney or assocation's attorney for their take on the statute.

Hope this answered your question!!