When money gets tight, Florida homeowners in HOA communities sometimes face a painful choice: pay the homeowners association or pay the mortgage. Both creditors have legal tools to force you out of your home. Understanding which creates the bigger immediate risk -- and how to manage both -- can help you make the smartest decision with limited resources.
Barrett Henry is a Broker Associate at REMAX Collective with more than 23 years of Florida real estate experience. He has helped homeowners across Tampa Bay and statewide navigate situations where both the HOA and the mortgage lender were pursuing foreclosure simultaneously. This guide explains how Florida lien priority works and what you should do if you are behind on either payment.
How Florida Lien Priority Works
Florida follows a "first in time, first in right" rule for lien priority. Your mortgage lender recorded a mortgage lien against your property when you closed on the home -- typically before the HOA ever recorded an assessment lien. This means the first mortgage is senior (higher priority) to the HOA's lien. In a foreclosure sale, the senior lienholder gets paid first.
What this means in practice:
- If the mortgage lender forecloses: The first mortgage lien is paid from the sale proceeds. The HOA lien is junior and may be extinguished (wiped out) if the sale does not generate enough to pay it. The HOA loses its lien against the property but can still pursue the original owner personally for the deficiency.
- If the HOA forecloses: The HOA's lien is satisfied from the sale, but the first mortgage lien survives. The buyer at the HOA foreclosure sale takes the property subject to the mortgage. The first mortgage is not wiped out.
For a deeper explanation of how HOA and mortgage foreclosures interact, read our HOA vs. mortgage foreclosure in Florida guide.
Why You Should Generally Pay the Mortgage First
In most cases, the mortgage represents a larger financial obligation and the mortgage lender has greater legal power to foreclose quickly and with fewer procedural requirements than an HOA. Reasons to prioritize the mortgage:
- Missing mortgage payments damages your credit score faster and more severely
- Mortgage lenders can sometimes begin the foreclosure process after as few as 3 missed payments
- A mortgage foreclosure judgment can include a deficiency judgment for the amount the property sells for below the loan balance
- Many loss mitigation options (loan modification, forbearance, FHA partial claim) are only available through the mortgage servicer -- keeping the relationship intact preserves access to these options
Why the HOA Should Not Be Ignored
Although the mortgage is typically the bigger financial risk, the HOA has its own foreclosure process that operates independently of the mortgage lender. Reasons not to ignore HOA dues:
- An HOA can foreclose even if you are current on your mortgage -- the two are separate legal proceedings
- HOA foreclosure can move from lawsuit to sale in as few as 6-12 months in Florida
- Before an HOA can file a lien, it must send a 30-day notice. Before filing a lawsuit, it must send another notice of intent to foreclose. These notice periods give you time to act, but the clock moves
- HOA foreclosure can result in you losing possession of the home even while still owing the mortgage balance, creating an extreme financial problem
- Condo association liens under F.S. 718.116 have a "6-month super-priority" rule that makes the most recent 12 months of unpaid assessments senior to a first mortgage in certain situations -- talk to a Florida attorney if your property is a condo unit
What to Do If You Are Behind on Both
If you are behind on both your mortgage and HOA dues, you need to act on multiple fronts simultaneously:
Step 1: Contact Both Creditors in Writing
Send a written notice to your mortgage servicer's loss mitigation department and a separate written notice to your HOA management company. Explain your financial hardship briefly and ask about available options. Document all communications. For your mortgage, you can also submit a formal hardship letter to begin the loss mitigation process.
Step 2: Request a Payment Plan from the HOA
Most HOA boards will consider a payment plan for delinquent assessments, especially if you approach them before a lawsuit is filed. A written payment plan stops the foreclosure clock while the plan is being honored. Get the agreement in writing and stick to it.
Step 3: Evaluate Loss Mitigation With Your Mortgage Servicer
Your mortgage servicer is required under CFPB Regulation X (12 C.F.R. Section 1024.41) to evaluate you for loss mitigation options before beginning foreclosure. Options may include: forbearance, loan modification, or a repayment plan. A successful modification that reduces your monthly payment can free up cash to also pay your HOA.
Step 4: Consider Selling Before Either Foreclosure Completes
If your home has equity -- the value exceeds both the mortgage balance and the accumulated HOA debt -- selling before either foreclosure completes may be your best option. You can use the sale proceeds to pay off both debts and potentially keep some equity. Barrett Henry can help you list the property and move quickly. Visit our sell before foreclosure page or our get help page.
Step 5: Consider Bankruptcy if the Debt Is Unmanageable
If you cannot negotiate payment plans or afford to sell the home, a Chapter 13 bankruptcy filing creates an automatic stay against both the HOA foreclosure and the mortgage foreclosure. The stay halts both proceedings immediately upon filing. Chapter 13 allows you to restructure and repay both debts over a 3-5 year plan while keeping the home. Consult a Florida bankruptcy attorney to determine if this is the right option for your situation.
Condo Owners: The Super-Priority Lien Issue
Condo owners in Florida face an additional complexity under F.S. 718.116. Florida law gives condo associations a "super-priority" for up to 12 months of unpaid assessments, meaning those 12 months can take priority over the first mortgage in a condo association foreclosure. This is different from regular HOA liens. If you own a condo unit and are behind on assessments, the condo association's foreclosure threat may be stronger than you expect, even relative to the mortgage lender. Read our detailed guide on HOA vs. mortgage foreclosure for more on this topic.
Get Help Now
If you are struggling to pay your HOA dues, your mortgage, or both, do not wait until a lawsuit is filed to take action. Barrett Henry at REMAX Collective serves homeowners throughout Tampa Bay directly and provides referrals throughout all 67 Florida counties. We can help you evaluate your options, connect you with the right professionals, and develop a realistic plan to protect your home or exit with minimal financial damage.
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