Over 9 million people in Florida choose to live in HOAs due to the many benefits offered by this lifestyle. These include access to convenient amenities, good property values, and a great sense of community.
To enjoy these perks, they must abide by the rules of the community, called the CC&Rs. These regulations ensure that all community members benefit equally from living in the HOA.
Failure to comply with the HOA CC&Rs can lead to fines, a lien against your property, or an HOA foreclosure.
HOA Fees, Fines, and Assessments
HOAs offer appealing onsite facilities like community centers, swimming pools, green spaces, and even golf courses. The homeowners must contribute equally to the upkeep of these amenities by paying HOA fees.
Additionally, they must comply with rules that apply to their homes' exteriors as well as their use of these amenities. Homeowners who do not stick with the rules may be fined for their contraventions.
When the HOA needs to carry out major repairs or refurbishments, they charge HOA property owners a special assessment to cover the costs. Homeowners who do not pay these amounts due in HOA fees, fines, and assessments can have a lien placed against their property and face foreclosure.
The HOA Foreclosure Process in Tampa
An HOA must provide the homeowner with at least 45 days' notice in writing via registered mail when they intend to record a lien against their property. This notice must include all the details of the amount owed and an opportunity to pay it.
If the homeowner disregards this notice, the HOA can foreclose on their property after they file the lien. Again, they must send a notice by registered mail advising the homeowner of their intention to foreclose.
HOA foreclosures are a judicial process in Florida. As such, they involve the following steps:
- Filing a foreclosure action with the local court
- The court sets a trial date
- The judge orders the sale of the home by public auction
In Florida, a mortgage supersedes an HOA lien, so the HOA only receives the amounts due to them if there's enough money left over from the sale proceeds after paying the mortgage.
How to Stop HOA Foreclosure
A homeowner can choose to fight HOA foreclosure and win if they can prove the board has engaged in incorrect billing, contravened the HOA CC&Rs, or overcharged homeowners.
Thus, the HOA board must follow the CC&Rs to the letter and practice precise accounting. If they lose the case, they're liable for any legal fees incurred by the homeowner.
If the homeowner has no defense, the only way to stop foreclosure is by paying past-due fees, submitting a qualifying offer, or declaring bankruptcy. Declaring Chapter 7 or Chapter 13 bankruptcy stops the foreclosure and discharges the lien.
Ensure Harmony in Your HOA Community
Hiring an experienced HOA management team can help you limit late fees and enforce HOA rules effectively.
PMI Tampa is supported by over 20 years of real estate experience. Our dedicated team is committed to crafting customized solutions for every client.
We can assist you with professional HOA management services, including efficient maintenance coordination, fee collections, and precise record-keeping. Our industry experience means we can guide you through the HOA foreclosure process if needed.
Sign up for the peace of mind that comes with a well-run, stable HOA community.
