This article will help you understand:
- How someone besides the lender or mortgage company could be able to foreclose your home or property.
- Some of the benefits and risks you should know before purchasing a foreclosure property.
- The process of purchasing a property at a foreclosure auction, and how to rent out the property.
Can Anyone Besides The Bank Or Mortgage Company Foreclose My Property?
In general, foreclosures are associated with someone owing a bank money. However, a homeowner could also owe other people money. For instance, perhaps a contractor put on a new roof and they were not paid by the homeowner.
In this case, the contractor would have the right to put a lien on your property, and then to foreclose on that property lien as well. If the property is purchased at a foreclosure sale and was put there by the roofing company, the purchaser is taking it subject to any other liens that are on the property.
When a property has an HOA or condo association, these organizations usually collect monthly dues, which are often hefty. If these fees are not paid, the HOA or condo association could file a lien against you and then foreclose the lien. In this scenario, you would lose your home to the HOA or condo association.
Facing foreclosure can be a scary situation, no matter who is threatening you with foreclosure. If you are worried about foreclosure or unable to make home-related payments, contact Dubyak Law Firm today for professional legal support.
What Are Some Of The Risks And Benefits Of Purchasing Foreclosure Properties?
If the property had a mortgage and the mortgage company decided to foreclose on the property, you would still have the right to defend that foreclosure as an owner of the property. This applies as long as you bought it before a lis pendens on the property was filed by the mortgage company. When the bank files with a clerk or public records, the public records will file a lis pendens.
The lis pendens is searchable by the public through the Clerk of Court’s office. A search would show that there is a lawsuit that has been filed or is about to be filed against that property. It is a legal notice to inform potential buyers that it is subject to the lawsuit connected to the property.
If you purchase the home prior to the filing of a lis pendens and the lender is looking to foreclose, they have to sue you, too. There are a few differences between a homeowner that is on the mortgage and a homeowner who is not on the mortgage. In this case, you would need to defend the foreclosure action just like the previous homeowner.
If you want to buy a property that is being foreclosed by a contractor, a condo association, or a homeowner association (HOA), the same thing can happen as with a mortgage company.
However, it is important to keep in mind that although you will own it, the property will still be subject to any taxes, mortgages, judgments, or liens that may already be on the property.
Can A Florida Homeowner Association Or Condo Association Buy Or Rent Out Foreclosure Properties?
If you want to buy a property as an investor, or if an HOA or condo association wants to purchase a property, it works similarly to an individual. The investor would need to be the highest bidder at the foreclosure sale. Once you are the owner of the property, you could then rent it out. As the deed owner, you can live in the property, rent it out, or do whatever you want with it.
If you are an investor and you purchase these types of properties, contact Dubyak Law Firm for help defending your property. We can assist you if the mortgage company tries to take the property back. You can even continue to rent that property out and make money while the foreclosure is pending.
What Are The Steps And Requirements For Purchasing A Foreclosure Property In Florida That You Intend To Rent Out?
In most of Florida, including Escambia County, there is an advertised foreclosure sale that happens multiple times a week in most counties. There are statutory guidelines for advertising foreclosure sales, and the Clerk of Courts has to properly advertise these sales. The lender must make sure proper advertising is happening in order to have a valid foreclosure sale.
In a foreclosure sale, properties are sold to the highest bidder. Most of this is done online through a real estate foreclosure auction. One specific company has virtually every contract with every county in the state of Florida to do online foreclosure sales.
In order to purchase a home in a foreclosure sale, you must create an account with the auction company, deposit money with the clerk report’s office of the county, and then bid on that property. The clerk’s office must pay the money the next business day.
After the foreclosure property is purchased, the Clerk of Courts will issue a certificate of title. This document transfers ownership from the original homeowner to the person who won the foreclosure bid. The property is subject to any liens or judgments that weren’t eliminated during the foreclosure process.
If you intend to rent it out, once you get the certificate of title and you are the official property owner, you can start renting it out as you would any other property.
With the guidance of a skilled attorney for Foreclosure Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Foreclosure Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling
(850) 266-7822 today.