Rent Skimming in FL - buying HOA foreclosure at auction to rent out.

Asked by Robert, Lake Worth, FL Wed Sep 12, 2012

Is it legal to buy a HOA foreclosure at auction and rent it out without paying the existing mortgage? I understand there is a law that deals with rent skimming, but I don't know if it applies to this situation.

Help the community by answering this question:

+ web reference
Web reference:

Answers

1
Craig Fialko…, Agent, Wellington, FL
Tue Jun 4, 2013
It's not rent skimming.

When an investor purchases the HOA or Condo association lien, they get a certificate of title, which means they control the property as if they owned it. It will still be subject to all other secured liens (1st mortgage etc..) that can foreclose on the Cert owner.

The new owner does not have to pay the mortgage since they are not the party that is liable on the NOTE.

They can rent for years before the bank forecloses and keep the money. It would be wise for them to pay the Association in order to keep getting the rent.

There is a law in FL where the association can demand the rent for deliquent owners.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more