Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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thanks in advance for any and all help.

My house is upside down almost 250k and up to about 15mo ago i never missed a mortgage payment. the past yr has been a spiral nightmare similar to the rest of the country and it really sucks, so my question is, I am in a house i cant afford, i havent paid association fees in a yr, i already filed Bk yr ago and i am 1500 behind. I heard my HOA can foreclose on me before BOA for money owed is this possible? I understand leins but how can they pay off my house isnt that what foreclosure is ? what am i missing please help 
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George Burns
Yes they can foreclose and get the property. They can also get a judgement and garnish wages and freeze bank accounts.

You might want to do a Google search on "Florida HOA foreclosure" and "Florida HOA lein foreclosure" and read up on it. Also look up the Florida Homeowners Association Act.

The best thing to do, if they have not yet started to take action, is to talk to the HOA President and try to work out a payment schedule.
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mike
that was really my question, hown can they foreclose when nobody knowsnwho to foreclose from ? if the paperwork is no good what happens ? 
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Moose
mike wrote:
that was really my question, hown can they foreclose when nobody knowsnwho to foreclose from ? if the paperwork is no good what happens ? 


I think you're a little confused on foreclosure.

Anyone with a valid legal interest in a property (creditor, repair contractor, HOA, tax assessor/collector etc.) can file a lien on a property to enforce payment. At some point, the lien holder can file suit to foreclose on the property to recover the amount(s) owed. If there are other lien-holders, they have to come forth and establish their standing in the matter, i.e., first mortgage holder, second mortgage holder, HOA, etc., etc.

In your case, the HOA could file for foreclosure to recover their past-due fees, which would automatically notify the servicer who would have an attorney file to assert their rights at any foreclosure sale.

Once the sale takes place, the first position gets paid, the second and so on.

Hope that helps.

Moose.



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George Burns
The short answer is that they sue you for the HOA relinquency etc, then they get the judgement against you, then they foreclose to collect.

What they foreclose on is your interest/ownership in the property, subject to the first mortgage and any applicable  encumberances like delinquent property taxes.

When they get the property then they make a deal with the bank. The bank might pay them or they might get the property from the bank through some means.

It has nothing to do with your first mortgage or your bank's foreclosure. It is a different foreclosure.
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William A. Roper, Jr.

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George Burns said:

It has nothing to do with your first mortgage or your bank's foreclosure.  It is a different foreclosure.


EXCEPT that it should probably also be noted that failure to pay taxes, to keep the property insured OR to pay the HOA or other PUD dues and fees is probably a breach of a covenant in the mortgage, deed of trust and/or other mortgage security instrument, separate from any non-payment of amounts due.

The valid holder of the note and mortgage would probably usually be entitled to foreclose upon a showing of a failure to pay the HOA even absent a showing of mortgage payment delinquency.  This might not matter, but is something to bear in mind.
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Cindy
This question is related to Florida HOAs, but is it true that not all HOAs have the right to foreclose, rather they can add late fees and other charges?

Do some states protect homestead property from HOA foreclosure?



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William A. Roper, Jr.
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Cindy said:
Do some states protect homestead property from HOA foreclosure?


I think you are asking a far too broad question the correct answer to which is not only going to be UNKNOWN to ALL Forum participants, but would also be UNKNOWN to most experienced real estate attorneys.

The answer is going to depend upon rather specific provisions of (a) state Constitutional provisions relating to "homestead", (b) state homestead laws, (c) state statutes realting to condominiums or other Planned Unit Developments (PUDs), (d) the express contractual provisions of the trust or other instrument creating the POA or PUD, (e) cases interpreting these, (f) sepcific facts relating to a homestead declaration.

And the answer might very well take hours to research and understand in respect of a single jurisdiction.

*

I would recommend that you begin with an assumption that a default in HOA dues is going to result in a foreclosure.  And I would further assume that a default in HOA dues would precipitate a foreclosure by a Lender with a mortgage on the unit.  IF someone is ALREADY in default and cannot cure the HOA default, then exploring homestead protection is an interesting avenue.  But frankly, I wouldn't waste more than an hour on research into this possiblity UNLESS I found some strong statutory language or case law right away.

I wouldn't want to be involved in a HOA foreclosure.
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