Escrow & Title
When a Florida property is purchased at an HOA lien foreclosure sale, does the buyer receive clear title?
AYes — all superior liens are extinguished by the HOA foreclosure
BNo — senior liens (such as first mortgages) generally survive an HOA lien foreclosure✓ Correct
CYes — the HOA guarantee clears all title defects
DNo — the property must be re-sold through a court auction
Explanation
An HOA lien foreclosure does NOT extinguish senior liens. The first mortgage lender's lien survives the HOA foreclosure, meaning the buyer at an HOA foreclosure sale typically takes the property subject to the first mortgage (which the buyer must assume or the lender can foreclose).
People Also Study
Related Florida Questions
- A Florida property is encumbered by a first mortgage of $200,000 and a second mortgage of $50,000. If the property sells at foreclosure for $220,000, how much does the second mortgage holder receive?Finance
- A Florida property subject to a 'first mortgage' and a 'second mortgage' goes into foreclosure. Which lien is satisfied first?Escrow & Title
- A Florida condominium buyer takes out a mortgage. The lender's 'title insurance policy' (mortgagee's policy) protects:Finance
- A Florida property sold at a tax deed sale. Does the buyer receive clear title?Property Ownership
- Which of the following liens would take priority over a first mortgage in Florida if not satisfied at closing?Escrow & Title
- Which type of mortgage allows the borrower to receive monthly payments from the lender, typically available to Florida homeowners aged 62 or older?Finance
- A Florida homeowner's title is 'clouded' due to an old, unsatisfied mortgage from a previous owner. The best remedy to clear this title cloud is to:Property Ownership
- When a Florida borrower fails to make mortgage payments and the lender files a lawsuit to foreclose, this is called:Escrow & Title
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →