Foreclosure issues

Asked by Dorothy, Wesley Chapel, FL Tue Oct 22, 2013

The home I am renting was foreclosed for the outstanding amount due to the association, but still has an outstanding mortgage also in foreclosure process with the bank. Can the person that won the bid for the amount due to the association evict me or collect the rent from me?

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Answers

7
Margaret Has…, Agent, Tampa, FL
Sun Nov 24, 2013
Do you have a lease? If so, you have the right to stay in the home until the end of your lease.

Margaret Hassani
Broker, Lightning Realty
Innovation and Experience
(813) 766-1501
Fax (813) 443-0118
zzmarg@gmail.com
http://www.LightningRealtyFL.com
1 vote
I believe the lease would need to be at "market" rental rates to be able to stay, though.
Flag Thu Dec 19, 2013
Margaret Has…, Agent, Tampa, FL
Thu Nov 7, 2013
Not being an attorney, I can only speak from my own experience. I own property in a community with a HOA. This particular HOA foreclosed on liens on many homes in the community. I don't know if they evicted the tenants, or just started collecting rent from them, but they did rent the properties out to help recoup the losses to the HOA. Of course when the bank finally forecloses on the properties, the tenants with leases will most likely be able to stay until the end of their lease.

Margaret Hassani
Broker, Lightning Realty
Innovation and Experience
(813) 766-1501
Fax (813) 443-0118
zzmarg@gmail.com
http://www.LightningRealtyFL.com
1 vote
Danielle Sha…, Agent, Cape Coral, FL
Tue Oct 22, 2013
You should consult an attorney. This has legal ramifications attached and real estate professionals cannot dispense legal advice.
1 vote
Alma Kee, Agent, Tampa, FL
Thu Nov 7, 2013
Hi Dorothy,

Tenants have rights under Federal Foreclosure laws.

Yes there are many investors that will take ownership at the courthouse when an HOA forecloses. The new owner will simply rent it out for as long as possible until the first mortgage eventually forecloses. It can be a very good investment for the investor depending on how long it takes the lender to foreclose.

I believe that as long as you have a written lease and your lease amount is for "market" rents then you can continue to stay and pay the "new owner" your monthly lease payments. If you are paying below market rental rates then I don't know if you have the protection to stay but your new landlord may work things out with you. Otherwise I think you may have 90 days to leave. Some Investors may not play by the legal "rules" and give you incorrect info to try to scare you. See the newspaper article link for info:

Before you pay anything to the "new owner" make sure to contact the HOA's Board of Directors (go to the next meeting) or you can also pull up the history on the Pasco Couny Clerk's office to see who was the high bidder at the foreclosure auction. Also some HOAs may not have any bidders at the courthouse so they will sell it off for less to an investor to recoup some of their loss so they don't have to manage the rental.

Here is a link to an article:

http://www.occ.gov/news-issuances/psa/federal-law-protects-r…

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
0 votes
Rebecca R. H…, Agent, Clearwater, FL
Tue Oct 22, 2013
I want to disclose that I am not an attorney and you should possibley contact one. I work with investors though that purchase homes via auction. They typically stay away from Homeowners Association Foreclosures because they are provided with a Cerfificate of title that does not warrant that there are not other liens on the property. The big question is, did the Association win the "bid" and have they acquired the property via the foreclosure (still subject to the mortgage) or did someone else bid and win thinking that this would acquire them the home outright not realizing that there is a mortgage on the property? If it was an individual and they have received a Certificate of Title, to the best of my knowledge (remember, I am not an attorney) they can do either. I do not know what lease you signed, but most are subordinate to Mortgages and most of all, foreclosure.

Typically the Mortgage Company will provide you with a notice to vacate. This notice should be 90 days but check on the internet regarding the "Tenant Foreclosure Protection Act". This may provide you with some interesting information. In the mean time, if you do not want to become displaced in a 90 day period, I would recommend relocating. Remember, until the property is foreclosed on or a Certificate of Title has been awarded to another property, although may be in the foreclosure process, the current owner of the property is legally entitled to their rent and can have you evicted if the rent is not paid.

If you need assistance in finding a new location please feel free to contacty me at 727-457-7550. I would still highly recommend that you contact Legal Council in regard to the matter.

Thank you

ReBecca R. Huffsmith
RE/MAX Marketing Specialists
3226 Little Road
Trinity, FL 34655
727-457-7550 Cell
0 votes
Liz DeAmbrose, Agent, Tampa, FL
Tue Oct 22, 2013
Dorothy, do you have a written lease with the current owner? If you have a lease the HOA will have to honor that lease.

Liz DeAmbrose
0 votes
Rose Vasilak…, Agent, Tampa, FL
Tue Oct 22, 2013
You are in a unfortunate situation and you will need to call and speak with a Attorney, they will advise you of the options you may have.
0 votes
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