198 So. 3d 694
Fla. Dist. Ct. App.2016Background
- Wells Fargo filed a mortgage foreclosure against Xavier and Rebecca LaTorre on August 3, 2010, and recorded a lis pendens on August 12, 2010.
- The LaTorres defaulted on their note (originally to Bank of America) and also failed to pay homeowners’ association (HOA) assessments.
- The Carrollwood Village Phase III HOA later obtained a county-court lien foreclosure judgment and sold the property to Bonafide Properties at an HOA lien sale on July 11, 2014.
- Bonafide moved to join or substitute as real party in interest in Wells Fargo’s pending foreclosure on September 9, 2014.
- The trial court denied Bonafide’s motion, barred it from participating further in the foreclosure action, but recognized Bonafide’s right of redemption to be determined at the bank’s judicial sale.
- Bonafide appealed; the appellate court affirmed, concluding a purchaser who acquires property after a lis pendens generally cannot intervene in the prior pending foreclosure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bonafide may join/substitute as real party in interest after purchasing at HOA sale while a foreclosure and lis pendens were pending | Bonafide: as purchaser at HOA sale, it has a real interest and should be allowed to join to protect its rights (including redemption) | Wells Fargo: Bonafide purchased subject to the pending foreclosure/lis pendens and cannot intervene in that action | Court: Denied intervention; purchaser pendente lite who buys after lis pendens generally cannot intervene |
| Whether trial court abused discretion in denying intervention | Bonafide: trial court’s blanket exclusion was improper and prevented protection of its interests | Wells Fargo: denial was proper under precedent and within court’s discretion | Court: No abuse of discretion; affirmed |
| Whether purchaser has any rights after county-court HOA sale | Bonafide: asserts rights (e.g., redemption) arising from its purchase | Wells Fargo: maintains bank’s superior rights under pending foreclosure | Court: Bonafide retains a statutory right of redemption to be addressed at the bank’s judicial sale but cannot intervene in foreclosure action |
| Standard of review for denial of intervention | Bonafide: not applicable (urges de novo or review) | Wells Fargo: abuse of discretion standard applies | Court: Reviews denial for abuse of discretion and finds none |
Key Cases Cited
- Market Tampa Invs., LLC v. Stobaugh, 177 So.3d 31 (Fla. 2d DCA 2015) (purchaser after lis pendens generally cannot intervene)
- Bymel v. Bank of Am., N.A., 159 So.3d 345 (Fla. 3d DCA 2015) (same principle regarding purchaser pendente lite)
- Whitburn, LLC v. Wells Fargo Bank, N.A., 190 So.3d 1087 (Fla. 2d DCA 2015) (purchaser after lis pendens takes subject to outcome of pending foreclosure)
- Timucuan Props. v. Bank of N.Y. Mellon, 135 So.3d 524 (Fla. 5th DCA 2014) (reiterating doctrine that purchaser pendente lite may not intervene)
- SADCO, Inc. v. Countrywide Funding, Inc., 680 So.2d 1072 (Fla. 3d DCA 1996) (purchaser subject to lis pendens not entitled to intervene)
- Andresix Corp. v. Peoples Downtown Nat’l Bank, 419 So.2d 1107 (Fla. 3d DCA 1982) (denying motion to intervene by purchaser of property subject to foreclosure and lis pendens)