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UPDATE: THIRD PARTY PURCHASER
Third Party Purchaser from HOA Foreclosure purchased the property subject to a superior interest. Third Party Purchaser should not have been permitted to participate as though it were a party to the note and mortgage.
On June 8, 2018, the Second District Court of Appeal, in The Bank of New York Mellon v. HOA Rescue Fund, LLC, Case No. 2d17-3291, 43 Fla. L. Weekly D1312b, held that “HOA Rescue should not have been permitted to intervene in the case. A purchaser of property that is the subject of a pending foreclosure action in which a lis pendens has been previously been recorded is not entitled to intervene in that foreclosure action.” Additionally, the Second District Court of Appeal went onto hold that, “ HOA Rescue should not have been permitted to participate as though it were a party to the note and mortgage.” citing Wells Fargo Bank, N.A. v. Rutledge, 230 So. 3d 550, 552 (Fla. 2d DCA 2017); cf. Pealer v. Wilmington Tr. Nat'l Ass'n, 212 So. 3d 1137, 1139 (Fla. 2d DCA 2017) (Sleet, J., Concurring) (stating that indispensable third-party purchasers “may participate in the bank's foreclosure proceedings only to the extent that they plan to exercise their statutory right of redemption and prevent the forced sale of the property”).
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