Cities’ Liens on Foreclosed Properties Placed After Final Judgment Aren’t Extinguished When Home is Sold
Ruling holds banks liable for liens placed after judgment and before sale
This case involves the application of Florida’s lis pendens statute, section 48.23, Florida Statutes, to liens placed on property between a final judgment of foreclosure and the judicial sale. The court holds that liens placed on property during this time window are not discharged by section 48.23.
The lis pendens statute serves to discharge liens that exist or arise prior to the final judgment of foreclosure unless the appropriate steps are taken to protect those interests. However, it does not affect liens that accrue after that date. The ten liens that were involved in the case were all recorded and based on conduct which occurred after the date of the first final judgment.
Full opinion below…
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4closureFraud.org
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JAMES OBER v. TOWN OF LAUDERDALE-BY-THE-SEA
Banks will be a real pickle if the homeowner files a bankrupty before the auction simply to put
a temporary stop on it. Lenders will have to do a title search again to make sure no liens have
been recorded post-judgment and through the time the judge re-sets the foreclosure auction and through the time of the new auction date. Such a lousy decision from the 4th DCA should
cause the legislature to quickly amend the lis pendens statue to supersede the 4th DCA opinion..
This is a terrible case for homeowners. Now lawyers for the banks will hotly object to judges
setting longer than 30 day sale dates. The judge will be required not to give the homeowner more time before letting the foreclosure auction take place. Hopefully the legislature will move quickly to amend the lis pendens law to allow the lis pendens to stay in effect until the auction
occurs.