SWEETHEART DEAL FOR BANKS!
Published August 4, 2023
Sure, these are the United States of America – and banks always
get sweetheart deals – even when it comes to foreclosures in
And with many condo associations having to deal with
foreclosures in the near future, this is very important for the
folks in charge of collections in Florida’s community
FS 720.3085(2)(c) makes it very clear: Banks –
unlike anybody else – has to pay only parts of what the
home/unit really owes, leaving the other owners of the community
holding the bag.
This is the SWEETHEART DEAL:
(c) Notwithstanding anything to the contrary
contained in this section, the liability of a first
mortgagee, or its successor or assignee as a
subsequent holder of the first mortgage who acquires
title to a parcel by foreclosure or by deed in lieu
of foreclosure for the unpaid assessments that
became due before the mortgagee’s acquisition of
title, shall be the lesser of:
1. The parcel’s
unpaid common expenses and regular periodic or
special assessments that accrued or came due during
the 12 months immediately preceding the acquisition
of title and for which payment in full has not been
received by the association; or
2. One percent of
the original mortgage debt.
The limitations on
first mortgagee liability provided by this paragraph
apply only if the first mortgagee filed suit against
the parcel owner and initially joined the
association as a defendant in the mortgagee
foreclosure action. Joinder of the association is
not required if, on the date the complaint is filed,
the association was dissolved or did not maintain an
office or agent for service of process at a location
that was known to or reasonably discoverable by the
[The wording for condos is exactly the same in FS
This provision is putting the association in an awkward
position: If there is a bank involved in foreclosure
proceedings, the association has to act real fast in order to
not let the actual debt get too high. That means: Foreclosure
proceedings on this home/unit have to be handled real fast,
eliminating the ability of the association to give the owner
This is just another example that shows that banks (from our
money) pay the most campaign funds to our legislators.
On the other hand: It’s still better than taking money from
China, the Ukraine or other foreign interests.
Jan Bergemann is president of Cyber Citizens For Justice,
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
associations. He moved to
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking