Florida Appeals Court: An HOA Can Foreclose and Still Sue for Unpaid Assessments

Homeowners association dues can feel like a smaller bill than a mortgage or a car loan, but a new Florida appellate decision shows how serious unpaid assessments can become. On August 7, 2026, Florida’s Second District Court of Appeal held in Haught v. Eagle Palms Homeowners Association, Inc. that an association can both foreclose its lien for unpaid assessments and also recover a money judgment for those same assessments ¹². The court affirmed a judgment of $30,502.44 against a later owner and his company ¹.

What happened

Eagle Palms is a townhome subdivision in Riverview ¹. In 2014, the association obtained a foreclosure judgment against the owners of one townhome who had stopped paying assessments ¹. Those owners filed bankruptcy, which postponed the foreclosure sale, but the sale eventually took place in August 2015 ¹.

Before that sale, Barry Haught paid the owners $1,000 for the property and took a quitclaim deed into a land trust ¹. He and his partners rented out the townhome and, despite collecting rent, paid no past due or current assessments ¹. The association sued in 2016 for the unpaid assessments and later added fraud-based claims ¹.

At trial, the defendants pointed to the association’s declaration, which said the association “may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the Lot” ¹. They argued that the word “or” limited the association to one remedy, and that because it had already foreclosed, it could not also sue for damages ¹.

What the court decided

The Second District disagreed. Section 720.3085(1)(c), Florida Statutes, provides that an association may foreclose a lien for assessments “and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien” ¹. That language has been in the statute since 2007 ¹.

The court read the declaration as a whole. It noted that the declaration makes assessments both a continuing lien on the property and the personal obligation of the owner, and that the section on nonpayment is titled “Remedies,” in the plural ¹. Reading the single word “or” to cut off one remedy would make either the lien or the personal obligation meaningless ¹. The court also noted that the declaration had been amended in 2010 to make a lot owner jointly and severally liable with the previous owner for unpaid assessments, consistent with the statute ¹.

Why this matters for Florida homeowners

There are more than a few lessons here for families in South Florida communities governed by an HOA or condominium association:

• Foreclosure may not end the debt. Under this decision, an association that forecloses can still pursue a money judgment for unpaid assessments ¹.
• Buyers can inherit the problem. The statute and the declaration in this case made a new owner jointly and severally liable with the prior owner for unpaid assessments ¹. Anyone buying a distressed property should get an estoppel certificate or payoff figure first.
• Interest and fees add up quickly. This declaration charged 18 percent annual interest on late assessments and allowed late fees ¹. A modest balance can grow into a five-figure judgment.
• Bankruptcy can pause, but timing matters. In this case, the prior owners’ bankruptcy postponed the foreclosure sale ¹. How association debt is treated in a Chapter 7 or Chapter 13 case depends on when the assessments came due and whether the owner keeps the home, so the details deserve careful review.

Falling behind on association dues often happens alongside other financial stress, such as rising insurance premiums, special assessments or job loss. Addressing the problem early, before an association files a lien foreclosure or a collection lawsuit, usually leaves more options open.

Anyone in South Florida facing association collection, a lien foreclosure or other mounting debt can request a confidential consultation with The Roca Law Firm, in English or Spanish.