Legal Question in Real Estate Law in Florida
IF a property is foreclosed by the sole lender at a public auction, is the bidder responsible for any remaining amount of the loan, even if the high bidder is the lender themselves? I am looking to attend a second foreclosure of the same property. First foreclosure happened 3 years ago when the plaintiff(LENDER) won the bid. Now the plaintiff is the owner who is being foreclosed by the Home Owners Association . If I win this bid in this foreclosure am I at all responsible for any loan amount? Even though the property foreclosed three years ago for the loan amount, I am still seeing on the county site that the loan is being reassigned to other lenders, can that still have an impact on the property if I was to win the bid?
2 Answers from Attorneys
The HOA lien is not superior to the first mortgage so they can only sell the property subject to the first mortgage not with it extinguished. You cannot buy the HOA lien at sale and own the property without the lien. Curious that the HOA is pursuing their matter at all since the lender is responsible under the law to them for payments now. They may be seeking a deficiency against the owner.
You would not be responsible to pay the loan amount being foreclosed. The property may have prior liens which you would assume.
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