What Is an HOA Lien in Florida?
When a homeowner falls behind on assessments, a homeowners association (HOA) or condominium association can record a lien against the property. Florida law gives these associations the right to do this quickly. Once recorded, the lien can grow to include late fees, interest, attorney fees, and collection costs.
If the debt stays unpaid long enough, the association can file a foreclosure lawsuit. Many South Florida homeowners are surprised to learn that an HOA can foreclose on a home even when the mortgage is current. That is one of the most important things to understand about Florida HOA law.
What Does "Super-Lien Priority" Mean?
Florida does not use the same "super-lien" label that some other states use. But Florida Statutes Sections 718.116 (condominiums) and 720.3085 (HOAs) do give associations a limited priority over a first mortgage for a narrow slice of unpaid assessments.
Here is how the priority works in practice:
- A condominium or HOA association can claim priority over a first mortgage lender for up to 12 months of unpaid regular assessments (or one percent of the original mortgage amount, whichever is less).
- This priority portion is sometimes called the "safe harbor" amount. A lender who buys the unit at foreclosure often pays only this capped amount to clear the lien.
- Any assessments beyond that capped amount remain the personal obligation of the original owner and can survive the mortgage foreclosure.
What this means for a homeowner is straightforward: the association has real power. It can foreclose for the full unpaid balance, and it does not have to wait for the mortgage lender to act first. In Miami-Dade, Broward, and Palm Beach counties, associations have used this right aggressively in recent years.
Why South Florida Homeowners Face This Risk
Condominium and HOA living is extremely common across South Florida. Maintenance fees have also risen sharply in many communities, partly because of new state inspection and reserve-funding requirements. A job loss, medical bill, or other financial shock can push a family behind on dues within a few months.
Once an account goes to the association's collection attorney, the balance can grow fast. Fees stack on top of fees. By the time a homeowner opens the notice of a foreclosure lawsuit, the total owed may be far more than the original missed payments.
How Filing for Chapter 13 Bankruptcy Can Help
Chapter 13 bankruptcy is a reorganization chapter. It allows individuals with regular income to propose a repayment plan that lasts three to five years. Many filers use Chapter 13 specifically to address mortgage arrears or HOA arrears while keeping their homes.
When a Chapter 13 case is filed, the automatic stay under 11 U.S.C. § 362 goes into effect. Filing the case is what triggers the stay. Once the stay is in place, it generally pauses the HOA foreclosure lawsuit while the case is open. There are exceptions, including situations involving repeat filings, so results vary by case.
To learn more about how the automatic stay works in different situations, see our post on the automatic stay explained.
Curing HOA Arrears Through the Plan
Inside a Chapter 13 plan, a filer can propose to pay back HOA arrears over the life of the plan, typically 36 to 60 months. Regular monthly assessments that come due after the case is filed must generally continue to be paid on time. The Bankruptcy Code treats these ongoing post-petition HOA dues as administrative expenses in many situations, which means missing them can put the case at risk.
A well-structured plan often looks like this:
- Pre-petition arrears (the overdue amount before filing) are paid back through the plan over three to five years.
- Post-petition dues (monthly assessments that come due after filing) are paid directly and on time, outside the plan.
- Other secured and unsecured debts are addressed according to the priority rules of the Bankruptcy Code.
This structure gives many homeowners a realistic path to catching up without losing the property.
The Florida Homestead Exemption and HOA Liens
Florida's homestead exemption is one of the strongest in the country. It protects a primary residence from most creditor claims, with acreage limits of half an acre inside a municipality and 160 acres outside. However, the homestead exemption does not block an HOA or condominium association lien. Association liens are among the narrow categories that can attach to and foreclose on a Florida homestead.
This is another reason why the Chapter 13 repayment structure matters so much for homeowners in communities with mandatory dues.
What About Chapter 7?
Chapter 7 is a liquidation chapter. It can discharge unsecured debts, including certain personal liability for HOA balances. However, Chapter 7 does not cure a lien. The lien itself survives against the property even if the personal debt is discharged.
This means a homeowner who files Chapter 7 may no longer personally owe the discharged balance, but the HOA can still pursue foreclosure on the property if the lien is not addressed. For homeowners who need to keep the home and cure arrears, Chapter 13 is usually the more relevant option. Past results do not predict future outcomes.
Credit Counseling and Other Filing Requirements
Before filing any bankruptcy case in the Southern District of Florida, a debtor must complete a credit counseling course from an approved agency. This must happen before the petition is filed. After the case is resolved, a debtor education course is required before a discharge can be entered. These are federal requirements that apply regardless of which chapter is filed.
To understand what happens at the meeting of creditors roughly a month after filing, including how it is handled in the Southern District of Florida (often by video or phone), see our post on the 341 meeting of creditors in Florida.
A Note on Fees and Costs
Every bankruptcy case involves filing fees, court costs, and attorney fees. These amounts differ by chapter and by case. Attorney fees, court costs and filing fees are explained in writing before any case begins. Some low-income filers may qualify for a fee waiver on court filing fees, depending on income and household size.
Key Takeaways
- Florida HOAs and condominium associations can foreclose even when a mortgage is current.
- A portion of unpaid assessments carries limited priority over a first mortgage under Florida law.
- Filing a Chapter 13 case triggers the automatic stay, which generally pauses an HOA foreclosure while the case is open.
- Chapter 13 allows filers to repay HOA arrears over three to five years while keeping the home.
- The Florida homestead exemption does not protect against HOA or condo association liens.
- Chapter 7 can discharge personal liability for HOA balances but does not remove the lien from the property.
- Ongoing post-petition HOA dues must generally be paid on time throughout a Chapter 13 case.
Understanding how HOA lien priority works under Florida law is an important first step for any South Florida homeowner who is falling behind on assessments. The rules are specific, and the timelines can move quickly once an association files for foreclosure.
Wondering if a fresh start fits your situation?
Attorney fees, court costs and filing fees are explained in writing before any case begins. Take the free 2-minute case review or call Recalde Law Firm at (305) 792-9100.