Sneaky, Sneaky Trick in the Foreclosure State

The wise guys in Florida are picking up some sneaky new tricks. Most homeowners who are overdue on their debts to HOAs owe less than $15,000. HOAs aren’t required to notify primary mortgage holders that the homeowner is in arrears on HOA payments.

HOA lawyers tell their clients to file for repayment in county court rather than circuit court. Circuit courts, of course, are working on huge backloads. So the HOAs can get a foreclosure in about half the time by going through county court.  The major lenders suddenly discover the rug’s been whipped out from under them, and the HOA which was owed the smallest debt now gets the entire foreclosed house.

It’s slick. It’s almost foolproof.  And it allowed one person to grab a one million dollar house for just $10,000. Is something wrong with this picture?  Is this kind of sickness really endemic in America?  What have we wrought? What have we wrought?

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

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2 Comments

Filed under HOA, HOA Horror Stories, Homeowners Association

2 responses to “Sneaky, Sneaky Trick in the Foreclosure State

  1. aqua

    i think its just disgusting that,if you miss a couple payments for whatever reason,these HOA’s have the power to foreclose on your home,even if its paid off.WTF? Who gives them this kind of power? Smh. I was reading a story on a soldier who went on tour twice to Iraq;each time he was gone, his HOA attempted to foreclose on his property,even though he paid them in advance for the time he wouldnt be there. Disgusting.

    • Aqua. Ah, but it gets even worse. Despite federal law that exempts military personnel serving overseas, HOAs often don’t abide by that law, and they get away with it. And wait until you read the story about the elderly lady whose home was seized in a dispute over 78 cents! It’s just too crazy.

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