Safe Harbor

[Lilyat108x]

In Florida, when a HOA forecloses on their lien before the mortgage foreclosure, are they still entitled to Safe Harbor?

[justbroke]

In Florida, when a HOA forecloses on their lien before the mortgage foreclosure, are they still entitled to Safe Harbor?

That's a complex question. If a third party obtains title to the property before the mortgage is foreclosed, then the third party should have paid the HOA assessments/dues when they took title. The law makes the third party jointly and severally liable with the prior owner. If there is a bank (mortgage) foreclosure or deed-in-lieu then the HOA has to follow the "safe harbor" to recover the 1% or 12-months, whichever is lower. If the HOA itself receives title, which they don't want (but we're speculating), then there is no safe harbor.

The way I read "my" HOA CC&Rs, when the HOA takes the property in a foreclosure, the property is not subject to assessments and other things.

[Lilyat108x]

That's what I thought.... no Safe Harbor.