New Case Prevents Banks From Delaying Foreclosure Sale

The Fifth District Court of Appeal on December 10, 2010 entered the following ruling:

LR5A-JV, ETC., Appellant, v. LITTLE HOUSE, LLC, ET AL., Appellee. 5th District. Case No. 5D09-3857. Opinion filed December 10, 2010.35 Fla. L. Weekly D2752a

Mortgage foreclosure -- Judicial sale -- No abuse of discretion in setting date for sale of real property which was subject of final judgment of foreclosure -- Judgment holder does not have right to control when judicial sale is set -- Trial court did not abuse its discretion in setting date of judicial sale in response to motion filed by condominium association, a junior lienholder -- Trial court's order setting date for sale of real property comported with statute and policies enunciated by supreme court task force and recent amendment to rules of civil procedure relating to mortgage foreclosures.

This case law decision gives Associations a much stronger legal basis for asking the Court to prevent a Bank from setting and/or cancelling its foreclosure sale and thereby delaying payment of past due assessments to the Association. Prior to this ruling the ability to convince a Court to force the Bank to hold the foreclosure sale was limited due to the lack of supporting case law. We will be using this case to continue our efforts to make sure bank foreclosures are prosecuted as quickly as possible.

The Condo and HOA Law Group remains committed to providing our clients with the most up to date legal information available and developing and utilizing new legal strategies to maximize collection of assessments and minimize bad debt.

Richard DeBoest II, Esq.
Condo & HOA Law Office, PLLC
2030 McGregor Boulevard
Fort Myers, FL 33901
(239) 333-3912
Email Richard

The foregoing information is general in nature and is not intended as specific legal advice applicable to your Association. Further, the principles of law cited herein are subject to change from time to time. Each case is fact and Condominium document specific.

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