Understanding Defenses to Association Lien Foreclosures

When facing a lien foreclosure claim, it’s crucial to know your defenses. While the situation may seem daunting, understanding the practical defenses available can be empowering. Here’s a detailed look at some defenses recognized by Florida courts:

Application of Payments

Disputes often arise over how payments are applied. Associations have statutory guidelines prioritizing payments first to interest, then to late charges, attorneys’ fees, and lastly, to the assessment itself. Accepting a late payment doesn’t automatically waive the claim for default, but it’s essential to understand the order of priority.

Selective Enforcement

Claims of selective enforcement, where not all delinquent owners are pursued equally, must show reasonable reliance and change in position. Generally, associations can file lawsuits against owners one at a time, limiting litigation expenses, making selective enforcement a challenging defense to uphold.

Payment and Accord and Satisfaction

The most straightforward defense is showing that the debt has been paid. If you can prove payment or an agreement to settle the debt (known as accord and satisfaction), you may avoid foreclosure. It’s important to note that disputes over what the association intends to do with the funds do not negate the debt itself. Ensuring the association has the necessary cash flow to function for all owners is paramount.

Waiver

An association’s statutory right to collect assessments is generally non-negotiable. However, in certain situations, relying on an estoppel certificate might allow an assertion of waiver. Associations should be cautious when entering settlement agreements for lesser sums, as this might inadvertently provide grounds for a waiver defense if not appropriately handled.

Statute of Limitations and Homestead

The statute of limitations for associations is a critical aspect to consider, as is the homestead exemption in Florida. However, the homestead exemption is typically not a defense against lien foreclosure actions.

New Smyrna Beach Foreclosure Defense Lawyer

Navigating the complexities of lien foreclosure defenses requires thorough knowledge and skill. If you’re facing foreclosure, consult with a professional attorney to explore your options and protect your rights. For residents in the New Smyrna Beach area, the Law Office of Andrew J. Pascale, P.A., offers premium foreclosure defense services. Contact them at 877-667-1211 to learn more.  This blog post is for illustrative purposes only and does not constitute legal advice.