All gurus, please explain!!!

[pelicula]

Hello,
I live in S.Florida.
Have been discharged Chap 7 over a year.
Surrendered all condo properties to the bank.
So far banks did not forclose on anything (1.5 years of not paying mortgage)

Could not afford to pay HOA fees on my empty, surrendered, investment property, so thoe HOA foreclosed, auctioned off and bought themselves my unit) 2 weeks ago.

I called the bank beforehand about the HOA foreclosure, but no one there cares.

What will happen to me? How will the bank get their surrendered collateral back?

The unit was underwater by about $100K.
HOA bought it for very little money, of course did not pay off the mortgage.

What now??

PLEASE HELP EASE MY ANXIETY

Thank you all

[justbroke]

Nothing happens to you. I don't think the Bank even cares about the property. Paying the HOA fees alone was probably what the Bank was avoiding. In any event, in a very recent case, the HOA was able to do a reverse foreclosure and deed the property back to the Bank, to force them to pay the fees.

I'm sure the Bank will refuse to pay the fees, the HOA will foreclose again, and the process will keep going until one of the two give up!

[pelicula]

Thank you JUSTBROKE for answering my question at such late hour.
So the bank wont come after me for the collateral when they are ready to forclose.
Will the take it away from the Condo Association.

They said the will put their name on the title and try to sell it.

HOW?????
There is a first about 300k and second about 60K

What are they gaining by this??

I just don't want the mortgage bank to say that I gave away their collateral


THANK YOU FOR YOUR HELP

[LSUTiger32]

It really is amazing. I surrendered two properties in my BK and I have not heard or seen any action on either one. I am seriously thinking about calling one of them and seeing if they would make me a sweetheart deal to get it back.

[keepmine]

Thank you JUSTBROKE for answering my question at such late hour.
So the bank wont come after me for the collateral when they are ready to forclose.
Will the take it away from the Condo Association.

They said the will put their name on the title and try to sell it.

HOW?????
There is a first about 300k and second about 60K

What are they gaining by this??

I just don't want the mortgage bank to say that I gave away their collateral



THANK YOU FOR YOUR HELP

Since you surrendered the property, you have no liability for any deficency balance.
None of what is happening now is your concern. Let the 2 players figure it out and you go on with your life.

[AngelinaCatHub]

Since you surrendered the property, you have no liability for any deficency balance.
None of what is happening now is your concern. Let the 2 players figure it out and you go on with your life.

'Keepmine' I thought the Deed was yours until the Foreclosure? Of course I know the OP put the intent on their schedules, but I thought you had to be responsible until name is off the property.

JB How could the HOA make a Deed unless they got a release of lien from the bank? Perhaps they did? I am sure the HOA will make a profit. I had a condo long ago. I would never have an HOA again. Too much politicking. Then you are at the will of idiots raising your fees as if they were in Congress. 'Hub

[keepmine]

'Keepmine' I thought the Deed was yours until the Foreclosure? Of course I know the OP put the intent on their schedules, but I thought you had to be responsible until name is off the property.

JB How could the HOA make a Deed unless they got a release of lien from the bank? Perhaps they did? I am sure the HOA will make a profit. I had a condo long ago. I would never have an HOA again. Too much politicking. Then you are at the will of idiots raising your fees as if they were in Congress. 'Hub

I'm just addressing her question as to liability for any deficency balance. WHy the bank and the HOA are taking this action is beyond the OP's control.

[StartingOver08]

What I am seeing here is S Fl is the HOA/Condo assn's getting very aggressive with their fees. They foreclose on their lien. Their lien comes before the mortgage(s). Then they sell the property in a short sale arrangement where the buyer has to pay all of the HOA/Condo fees in arrears that the bank refuses to pay when the short sale is negotiated. BTW, the bank can refuse because FL law limits the max amount the lender is responsible for paying when they F/C on a property (thanks to the bankers lobby).The limitation is 12 months or 1% of the mortgage amount for HOA fees.

This seems to be happening more frequently now because the assn's have been hit so hard with non-payment of fees that many assn's are in danger of being insolvent. This is more likely to happen with newer assn's - those that were established within the last decade. Those that were established for a longer time period appear to have greater reserves.

Keepmine is right. The OP is safe because she/he has already discharged their liability for the pre-petiton HOA/condo fee delinquency. HOWEVER, if the assn sells the property and is not able to recover the post petition HOA/condo fees from the new buyer and/or lender upon the sale, then FL statues do allow the assn to recover the post-petition unpaid fees from the OP. Look up Fl Statutes 720 for detail.

[pelicula]

THANK YOU ALL for your helpfull answers!!

I was getting panic attacks over this HOA foreclosure.

First it was worrying about Chap 7. going through OK now this HOA foreclosure.
I don't think they let the bank know of their intent to forclose because they were not named on any of the papers I got re. this forclosure.

You think the bank has no clue??
And this why they have not acted now?

How can I check inS.FL who bought this condo at the auction??
It was sold the first week of Feb.
THANK YOU

[justbroke]

JB How could the HOA make a Deed unless they got a release of lien from the bank? Perhaps they did? I am sure the HOA will make a profit. I had a condo long ago. I would never have an HOA again. Too much politicking. Then you are at the will of idiots raising your fees as if they were in Congress. 'Hub

Just read the article at http://www.hoanewsnetwork.com/media/...oreclosure.php. I couldn't believe it myself, but if this starts to work... you may see this tactic more and more in Florida!