HOA as defendent in foreclosure

[FlaRiptide]

Can anyone advise me of why a Homeowner's Association would be listed as a defendant in a foreclosure?

Our association is listed as a defendant, summons served, in approximately eight foreclosures over the past several years. As the HOA has no other interest in the single family private homes other than the attached covenants I do not comprehend why the HOA is shown as a defendant in the court records.

 

[dee_dub]

Are they on title in any way? Restrictive covenants, liens, mortgages...

 

[FlaRiptide]

No, definitely not any liens or mortgages.

Is this how covenant restrictions are attached by means of the title? If so, why would this matter? Doesn't the title reflect the property and not the owner? It just seems to me that having the HOA listed as a defendant on the foreclosure indicates a potential loss to the HOA if the case is lost by the defendant. The HOA has nothing to lose. The covenants remain regardless of who owns the property, either an individual or the mortgage company.

 

[jcf1]

HOA defendant in foreclosures

The reason that the HOA or COA is listed as a Defendant in a foreclosure action is because it has an interest in possible unpaid assessments which could survive the action if not duly foreclosed out. These unpaid assessments can exist whether or not a lien is filed so the bank has no way of knowing about them in a title search. In FLA, the law is very specific as to HOA and COA assessments, and dictates that a portion of the unpaid assessments may even survive the foreclosure action (COA's its 1% of mortgage or 6 months past due, and HOA it is now 1% or 12 months past due whichever is less). Of course facts and circumstances dictate each unique case.