Title Research

Purpose of this document is to get a general knowledge of how Liens work, and how to research the possible existence of them on your property of interest. NOTE: The opinions expressed below are not official legal material. Get feedback from a Lawyer before making any decision. Do your own research! Everyone County and State has different laws.

Google Search, "Lien Priority" for extensive lien priority guidelines.

Some general guidelines

• Lien's go with the property, not the person.
• May be possible to fight liens by a "Quiet title" lawsuits, if lien holders dont object, to lose in court a quiet lawsuit can
eliminate an existing lien on a property.
• Lien seniority decides who gets paid first, Seniors first juniors second.
• Redemption period in Florida is 10 Days. Need more information.
• Certificate of sale is issues to your 10 days after the sale.
• A junior lien holder can pay you for your lien if it is in higher position, and thus take on the title. You would break even in that
situation.
• If you bid on a second mortgage, you will still be responsible for the first mortgage because the first mortgage has priority over a
second mortgage.
• Reverse is true if you bid on a primary mortgage, the secondary liens and all junior liens should lose out.

Florida is a super lien state

Florida is 1 of 20 Super Lien States, but 1 of 3 "Limited Lien States" http://www.usfn.org/AM/Template.cfm?Section=USFN_E_Update&template=/CM/HTMLDisplay.cfm&ContentID=6927 The super lien priority is limited to first mortgagees or their assignees taking title by foreclosure or deed-in-lieu if the first mortgage was recorded on or after April 1, 1992. If the first mortgage was recorded prior to April 1, 1992, the super lien will still be operative if the condominium declaration made reference to future amendments to the Florida Condominium Act (Chapter 718). The amount of the "super lien" is the lesser of: (a) unpaid common expenses and regular periodic assessments that accrued or became due during the six months immediately preceding the acquisition of title; or, (b) one percent of the original mortgage debt. The one-percent limitation does not apply unless the first mortgagee joins the association as a defendant in the foreclosure action. But that joinder 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 an office which was known to or reasonably discoverable by the mortgagee. In the event the condominium association brings an action to foreclose its common charge lien, it may also recover reasonable attorneys’ fees.

This essentially means that Associations can foreclose on the property as a first lien priority that would gain precedence over the first mortgage!

This means that you could essentially purcahse a HOA Lien, and since it is in higher priority than a first mortgage you would own the property. HOWEVER, when notified the primary mortagee would likely buy out your HOA lien at a break even.