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The Decision to Foreclose

Many Associations have recently inquired into the prudency of foreclosing in light of the recent Third District Court of Appeal case of Aventura Management, LLC v. Spiaggia Ocean Condominium Association, which held that an Association may not collect past due assessments from a foreclosing lender if the Association had previously completed a foreclosure on the property. It should be noted that Spaggia is not binding in our District, and an analogous case has not yet been tried in our District. More importantly, the decision to foreclose should not be dependent on whether the Association can ultimately collect the severely reduced amount that most lenders will end up owing under the Safe Harbor provisions of Florida Statute Sections 718 and 720. When making the decision to foreclose, the Association should have an eye on the future, specifically, whether the foreclosure will serve to deter other owners from not paying assessments or will put the Association in position to lease the property in an effort to collect as much of the past due amounts as possible. Thus, while the status of the lender foreclosure is relevant with respect to anticipating how long the Association can hold the property after foreclosure, it should not be a determining factor of whether to foreclose at all. We recommend that each property be reviewed on a case by case basis before the Board makes a final decision.

Joseph R. Cianfrone, P.A.

By: Daniel J. Greenberg, Esq.


Jennifer M. Sinclair

Are Your Documents About to Expire? Part 1
Are Your Documents About to Expire? Part 2
Underage Swimming
Lender Foreclosures
The Decision to Foreclose
Seminar was a success
Thinking of a special assessment?