It is a common misconception that when a bank forecloses on a home, the only parties to the lawsuit are the bank and the debtors who contracted with the bank (generally, the property owners). This is not the case. When the bank forecloses, it wants to receive a clean title to the property, which means any other person or entity that may have an interest in the property that is inferior to the bank’s mortgage must also be named in the lawsuit. Tenants may be named because they may have a leasehold interest in the property. Further, in some cases, the Tenants may be ordered to Deposit Rent into the Court Registry. A Homeowners’ Association may be named because it could have a lien on the property. Additionally, parties who have judgments against the property owners will likely be named, if these judgments were recorded after the mortgage was recorded. Even the federal government, the state, city, and county can be named, if they have liens on the property from nonpayment of taxes or various code violations.
Being served with a foreclosure lawsuit can be scary, especially if you do not understand why you were listed as a Defendant. Tenants, Homeowner’s Associations and other junior lienholders may have rights that should be protected in the foreclosure lawsuit. You may benefit from consulting with an attorney who can provide affordable representation to you throughout the foreclosure lawsuit. It may provide you with a certain peace of mind to know that your interests are being protected.
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The Meddin Law Firm, P.A. and Attorney Anna E. Meddin can help individuals, families, and spouses within the Florida Court system of Orlando, Central Florida and throughout the State of Florida. The Meddin Law Firm is located on “Attorney Row” in downtown Orlando at 1500 E. Robinson Street Orlando, FL 32801.
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