Unit Foreclosure
The "Foreclosure" page on the Board Synergy Club's website provides an overview of the foreclosure process as it pertains to condominium associations. It outlines the association's authority to foreclose on units due to unpaid assessments, detailing the legal procedures involved. The page also discusses the rights and responsibilities of unit owners during foreclosure, emphasizing the importance of adhering to Florida Statutes and the association's governing documents. Additionally, it highlights potential consequences of foreclosure for both the association and the unit owner, including financial liabilities and impacts on property ownership.
Source: https://www.jimersonfirm.com/blog/resources/faqs/condominium-law/
There shall be no limitation on the association's right to purchase a unit at a foreclosure sale resulting from the association's foreclosure of its lien for unpaid assessments. The association's board has the power, unless prohibited by the declaration, articles of incorporation or bylaws, to purchase units in the condominium and to acquire and hold, lease, mortgage and convey them.
No foreclosure judgment may be entered until at least 30 days after the condominium association gives written notice to the unit owner of its intention to foreclose its lien to collect the unpaid assessments. If this notice is not given at least 30 days before the foreclosure action is filed, and if the unpaid assessments, including those coming due after the claim of the lien is recorded, are paid before the entry of a final judgment of foreclosure, the association shall not recover attorney's fees or costs.
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Florida Statutes §718.111(9)
(9) PURCHASE OF UNITS.-The association has the power, unless prohibited by the declaration, articles of incorporation, or bylaws of the association, to purchase units in the condominium and to acquire and hold, lease, mortgage, and convey them. There shall be no limitation on the association's right to purchase a unit at a foreclosure sale resulting from the association's foreclosure of its lien for unpaid assessments, or to take title by deed in lieu of foreclosure. However, except for a timeshare condominium, a board member, manager, or management company may not purchase a unit at a foreclosure sale resulting from the association's foreclosure of its lien for unpaid assessments or take title by deed in lieu of foreclosure.
Florida Statutes §718.116(6)(b)
(6)(a) The association may bring an action in its name to foreclose a lien for assessments in the manner a mortgage of real property is foreclosed and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien. The association is entitled to recover its reasonable attorney's fees incurred in either a lien foreclosure action or an action to recover a money judgment for unpaid assessments. (b) No foreclosure judgment may be entered until at least 45 days after the association gives written notice to the unit owner of its intention to foreclose its lien to collect the unpaid assessments. The notice must be in substantially the following form:
DELINQUENT ASSESSMENT
This letter is to inform you a Claim of Lien has been filed against your property because you have not paid the (type of assessment) assessment to (name of association). The association intends to foreclose the lien and collect the unpaid amount within 45 days of this letter being provided to you.
You owe the interest accruing from (month/year) to the present. As of the date of this letter, the total amount due with interest is $ . All costs of any action and interest from this day forward will also be charged to your account.
Any questions concerning this matter should be directed to (insert name, addresses, and telephone numbers of association representative).
If this notice is not given at least 45 days before the foreclosure action is filed, and if the unpaid assessments, including those coming due after the claim of lien is recorded, are paid before the entry of a final judgment of foreclosure, the association shall not recover attorney fees or costs. The notice must be given by delivery of a copy of it to the unit owner or by certified or registered mail, return receipt requested, addressed to the unit owner at his or her last known address; and, upon such mailing, the notice shall be deemed to have been given, and the court shall proceed with the foreclosure action and may award attorney fees and costs as permitted by law. The notice requirements of this subsection are satisfied if the unit owner records a notice of contest of lien as provided in subsection (5). The notice requirements of this subsection do not apply if an action to foreclose a mortgage on the condominium unit is pending before any court; if the rights of the association would be affected by such foreclosure; and if actual, constructive, or substitute service of process has been made on the unit owner.
(c) If the unit owner remains in possession of the unit after a foreclosure judgment has been entered, the court, in its discretion, may require the unit owner to pay a reasonable rental for the unit. If the unit is rented or leased during the pendency of the foreclosure action, the association is entitled to the appointment of a receiver to collect the rent. The expenses of the receiver shall be paid by the party which does not prevail in the foreclosure action.
(d) The association has the power to purchase the condominium parcel at the foreclosure sale and to hold, lease, mortgage, or convey it.