Legal Question in Real Estate Law in Florida

Two years ago four home owners in our HOA walked out of their mortgage. Our home owners association says that the bank has given them permission to rent out these units. However, the monies earned by the HOA stay with the community and nothing is paid to the bank. This doesn't sound legal. Is this a possibility


Asked on 10/12/14, 2:13 pm

2 Answers from Attorneys
Jean Winters Winters & Winters, PA

The very first question is who has title to these properties? Has there been a foreclosure? If not, then the bank cannot authorize anything of the sort. Secondly, I have never seen a bank that allowed an association to lease its property and keep the rents. Typically, banks do not even pay ongoing assessments until they are sued or sell the property.

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Answered on 10/12/14, 2:17 pm
Barry Stein De Cardenas, Freixas, Stein & Zachary

If the bank owns the properties and has given permission for this process, it is legal. That said, I agree with Jean Winters, it is not very likely that the bank owns the property and agreed to this procedure. Get an attorney involved

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Answered on 10/13/14, 7:07 am


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