HOA has foreclosed on property

I have spoken to 2 attorneys and received 2 different answers...so I'll just ask the people who really know instead!

When an HOA (in Fla) forecloses on their lien and takes title, but the person on the note and mortgage is gone, can the HOA list the property and have the HOA atty negotiate a short sale WITHOUT the owners participation? I have 2 associations telling me that they can, 1 atty says maybe...

Thanks

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Permalink Reply by Darlene Krause on October 7, 2010 at 4:25am

I spoke with a Supervisor at Chase and they will not accept a short sale transaction from the HOA. They decided that if the title was transferred even by Certificate of Title that this violated the Due on Sale clause in the mortgage, so technically Chase could demand all sums due on the mortgage.

He said there was an attorney in Florida who was promoting to Homeowner Associations that they should foreclose then submit for a short sale. But if a HOA takes title thru foreclosure it really isn't a short sale.

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