Law Firm Blog

How Deficiency Judgments Can Help Condominium Associations and HOA’s


December 2012




When a first mortgagee or its successor takes title to a property via foreclosure, many condominium associations and homeowners’ associations find themselves in the unenviable position of collecting the lesser of 12 months of unpaid common expenses and regular periodic assessments or one percent (1%) of the original mortgage debt.   Florida law restricts recovery by an association to the lesser of 12 months of unpaid dues or 1% of the original mortgage debt.  However, many residents owe their association amounts in excess of the above-referenced statutory limit.  Consequently, many associations write off the uncollected debt from the previous owner as uncollectable.  This need not always be the case.


One underused method of collection available to associations is to seek a deficiency judgment against an owner.  Our highly skilled legal professionals know methods to help associations obtain a deficiency judgment.  To do so, the association need not expend additional court costs and process server fees.  


Once a court order is entered against the borrower in favor of an association, our firm utilizes highly specialized debt collecting techniques to recover the court ordered award.  Of course, a deficiency judgment is something that should be sought on a case-by-case basis.  If an association does not believe the former resident(s) has available funds, then seeking a deficiency judgment may not be in its best interests.  However, if the association knows that the former resident(s) are employed and/or have available funds, then a deficiency judgment may enable it to recoup the entire amount of delinquent expenses, plus attorney’s fees and costs.



                                                                                                                 Very truly yours,


                                                     Law Offices of Karen Cohen, PLLC


                                                                 Jared M. Gravv, Esq.

                                                                       For the Firm