By Jan Bergemann

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 community associations.


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 associations.


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.



(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 mortgagee.

[The wording for condos is exactly the same in FS 718.116(1)(b)]

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 some leeway.


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.

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Jan Bergemann

Jan Bergemann is president of Cyber Citizens For Justice, Florida 's largest state-wide property owners' advocacy group. CCFJ works on legislation to help owners living in community  

associations. He moved to Florida 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 Tallahassee - 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 Florida 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 in Florida !

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