HOA/bank dispute/last month rent/security deposit query

[bentlebee]

Many HOA's disclose the house is in foreclosure and often HOA's are now the first to foreclose, than rent it out and make an agreement with the lender to sign over the deed in return for what the HOA has been owed and that way the lender doesn't have to foreclose on the house.

It is legal to rent out a house in foreclosure if it is disclosed but also due to the Law put in place in approx. 2008 or a little bit later any lease prepared after the house is in foreclosure is not legally anymore and tenants have to do their due diligence and if they hire a realtor than the realtor can do that for them or if they rent from any person, company, etc. they can demand a written letter that the property is currently not in foreclosure and have it signed by the owner.

[citybily]

That's the point Father was making - I bet the HOA didn't do that with the renter.

Just because an HOA files a lis pendens , doesn't automatically give the HOA the right to RENT the property !

[Gjsteinmph]

They utilized the Florida Statue in chapter 720 that allows HOA to recoup lost HOA dues by filing a "reverse" foreclosure on the property. This was noted in the court records. 5 days after we moved in with our 1-year lease, the house was sold at auction and did not sell with a bid higher than the bank, so it was returned to the bank as REO. What further complicates thins is that the HOA was not joined in the banks foreclosure, so the full right to the title is in dispute. I have spoken with legal counsel, who recommended that I do not pay the HOA or the bank, and to pay into the clerk of court if anyone files a notice to quit.
BTW,in the meantime, the bank has put the house up for auction on Homesearch.com twice, and twice the bids did not meet the reserve. The bank has not responded to any letters from my counsel, despite a "deadline" of July 21 for my response to the cash-for-keys offer.

[bentlebee]

Originally Posted by Gjsteinmph

They utilized the Florida Statue in chapter 720 that allows HOA to recoup lost HOA dues by filing a "reverse" foreclosure on the property. This was noted in the court records. 5 days after we moved in with our 1-year lease, the house was sold at auction and did not sell with a bid higher than the bank, so it was returned to the bank as REO. What further complicates thins is that the HOA was not joined in the banks foreclosure, so the full right to the title is in dispute. I have spoken with legal counsel, who recommended that I do not pay the HOA or the bank, and to pay into the clerk of court if anyone files a notice to quit.
BTW,in the meantime, the bank has put the house up for auction on Homesearch.com twice, and twice the bids did not meet the reserve. The bank has not responded to any letters from my counsel, despite a "deadline" of July 21 for my response to the cash-for-keys offer.

Very good advise, pay into the court register since that is the legal way to do it

the law is clear that tenants have to do their due diligence and in Florida there are public records and your lease is not valid since it was signed after the house was in foreclosure which makes you a month to month tenant.

That is why the law changed. It protects tenants but also warns tenants to check it out. Some tenants think if I sign a lease I will be safe and can stay. Not true.

That is only if the lease was signed prior to the lis pendens filing and some tenants ask us what if a I renew for a year than I can stay? NO, since the renewal is a new contract even though it is based on the same terms but different time line.

You better start packing and moving or deal with some stressful times since you know it will not last even though you have a lawyer. Lawyers are great help but your lawyer doesn't work for free and the other party doesn't have to pay for your lawyer so if you rather keep paying a lawyer aside from rent or have a peaceful place than move. You don't have to move within a week or two but you know this is going to be an ending situation sooner than later so why make it painful while you now know what is going on.