Foreclosures In Florida

Association Foreclosures and Small Lien Foreclosures

In Association foreclosures and small lien foreclosures, WFG requires personal service of process on the former owners instead of constructive service i.e. publication, as a risk analysis proposition. While constructive service is a legal way to serve a person, WFG will not rely it in small lien foreclosures including Association foreclosures because we need o be sure that the owner knew he/she was going to lose their property for that small lien amount.

Competing Foreclosures

If mortgage being foreclosed is a first mortgage and if the Association is brought in to the mortgage foreclosure, the Association can be wiped even when it obtains a Certificate of Title in the Association foreclosure subject to the lender having to pay the lender’s safe harbor amount of Association fees to the Association. However, when a 3d party purchases title at the Association’s foreclosure sale and obtains a Certificate of Title, while that 3d party’s title is also wiped out by the mortgage foreclosure, WFG is concerned that the 3d party may not realize that the title obtained in the Association foreclosure was eliminated in the mortgage foreclosure and may not voluntarily vacate the property. Therefore, even though the 3d party’s title is eliminated, WFG does not want to have to pay, on behalf of its insured owner, to eject the 3d party. Therefore, we usually require a deed from that 3d party purchaser. However, in lieu of a deed, WFG will accept an affidavit from the seller or seller’s representative that the property is vacant i.e. that the 3d party is not in possession of the property.