In short: Not unless the final judgment specifically reserved jurisdiction over that issue. In Central Mortgage Co. v. Callahan, the lender bought the home at its own foreclosure sale and then asked the foreclosure court to decide how much it owed three community associations. The Third District affirmed the denial of that post-judgment motion on July 16, 2014, holding that a general reservation of jurisdiction was not enough and the dispute had to be litigated separately.
The Facts
Central Mortgage Company filed a residential foreclosure in Miami-Dade in 2009 and named three associations as defendants: a master homeowners’ association, a sub-association and a condominium association. They answered and claimed assessments under section 718.116 and section 720.3085.
The October 4, 2011 final judgment made Central’s lien superior except for assessments that are superior under section 718.116. A separate paragraph contained the standard reservation of jurisdiction to enter further orders, such as writs of possession and deficiency judgments. Central bought the property at the sale and took title. When it asked for estoppel letters, the associations claimed past-due amounts that, according to Central, went back years and far exceeded the statutory caps on a first mortgagee’s liability.
In March 2013 Central asked the foreclosure court to determine the assessments due. The trial court denied the motion, and Central appealed (No. 3D13-1672). The points below are what the lawyers argued, not findings by the court.
- Central argued the judgment’s reference to section 718.116 and the general reservation of jurisdiction let the court enforce its own judgment, and that requiring a new lawsuit every time would double the foreclosure caseload.
- The panel asked whether Central’s claim against the associations really arose only after it bought the property, making it a new cause of action rather than enforcement of the judgment.
- The associations argued the judgment mentioned only the condominium statute, not chapter 720, so two of the three associations were not covered at all; that a general reservation is not enough; and that the condominium association had already filed a separate lien foreclosure in county court where Central had raised the same issues.
The Decision
The Third District affirmed in a written opinion on July 16, 2014. It treated the question as one of first impression: whether a court’s inherent power to enforce its judgment lets it decide statutory assessments after the time to modify the judgment has run, when the judgment contains only a general reservation of jurisdiction. It held the trial court lacked jurisdiction.
The amount of assessments owed was never litigated or decided in the foreclosure. The judgment only set lien priority. Relying on Ross v. Wells Fargo Bank, 114 So. 3d 256 (Fla. 3d DCA 2013), the court held that a reservation of jurisdiction must be specific, and a general clause like this one did not reach assessments under section 718.116 or section 720.3085. In the court’s words, when Central filed its motion, “there was nothing for the trial court to enforce.”
Central’s motion was also filed after the time rule 1.530 allows for a motion to alter or amend a judgment. The mandate issued January 30, 2015.
The Law
Florida limits what a foreclosing first mortgagee owes an association when it takes title. For condominiums, section 718.116(1)(b) caps the lender’s liability at the lesser of 12 months of unpaid common expenses and regular assessments before it acquired title or 1 percent of the original mortgage debt, if the association was joined in the foreclosure. Homeowners’ associations have a similar cap in section 720.3085(2)(c).
Once a final judgment is entered and the time for rehearing or a motion to alter or amend under rule 1.530 has passed, the trial court generally loses jurisdiction over the case except for matters it specifically reserved or that a statute or rule allows it to decide after judgment. Central Mortgage applies that rule to association assessment disputes after a foreclosure sale.
Lessons
- Lenders who expect to bid at their own sale should ask for a final judgment that specifically reserves jurisdiction to determine association assessments under sections 718.116 and 720.3085.
- A general reservation of jurisdiction for writs of possession and deficiency judgments will not cover a later fight over association dues.
- Without a specific reservation, the assessment dispute goes to a separate lawsuit, often the association’s own lien foreclosure.
- Check which statute applies. A judgment that mentions only the condominium statute says nothing about homeowners’ associations governed by chapter 720.
Source: Central Mortgage Co. v. Callahan, No. 3D13-1672 (Fla. 3d DCA July 16, 2014); ACIS docket.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
🔍 Paragraph 4 Extinguished Every Lien — Can the Court Still Enforce Its Own Judgment?
Read the Law on FloridaRules.net
The statutes and court rules discussed in this article, free to read on FloridaRules.net:
Go Deeper
- HOA Safe Harbor Caps What a Foreclosing Lender Owes (Catalina West v. Fannie Mae)
- Bought at a Foreclosure Sale, Sold It, and Still Had a Live HOA Dispute (Real Estate Solutions v. Viera East)
- How Far Back Does a Condo Buyer Owe Unpaid Assessments? (Park West v. Londono)
Frequently Asked Questions
How much does a bank owe the condo association after foreclosure?
If the association was joined in the foreclosure, section 718.116 caps a first mortgagee’s liability at the lesser of 12 months of unpaid regular assessments before it took title or 1 percent of the original mortgage debt. HOAs have a similar cap under section 720.3085. Disputes over the amount are common, as Central Mortgage v. Callahan shows.
Can the foreclosure judge decide what the lender owes the HOA after the sale?
Only if the final judgment specifically reserved jurisdiction over that issue. In Central Mortgage, a general reservation for writs and deficiency judgments was not enough, so the lender had to litigate the amount elsewhere.
What does reserving jurisdiction in a final judgment mean?
It means the court keeps the power to decide a specific issue after the judgment is entered. Florida courts require the reservation to be specific; otherwise the court generally loses jurisdiction once the time for rehearing under rule 1.530 has passed.
What should a lender do if the association demands too much after foreclosure?
Raise the statutory cap in the right forum. Without a specific reservation in the foreclosure judgment, that is usually a separate action, such as defending or counterclaiming in the association’s own lien foreclosure, as Central did in county court.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate disputes, title problems and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
