What options does an association have for the collection of past due assessments?
The Florida Statutes set out a procedure whereby an association may provide a property owner with notices of past due assessments, and eventually record a lien against property if the assessments remain unpaid. The association then has the option to foreclose on the lien, and to recover the amount that it is due from the sale of the property. Alternatively, an association can file an action to recover a money judgment against an owner. The rights that an association has against the owner who incurred the assessments, a party who took title after a foreclosure or a party who took title after a tax deed sale may differ.
If a senior lien-holder exists (for instance, a bank who holds a mortgage), it sometimes still makes sense to go through with the foreclosure process. The bank’s lien will still exist, but until the bank forecloses its own lien, the association can rent the property out to recoup the amounts that it is due. We can help you determine what lien rights your association enjoys, what priority they have vis-à-vis other liens, and we can advise you on the proper procedure for enforcing those rights. If appropriate, we can prosecute any foreclosure action that is required to ensure that the association gets paid.