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Liens recorded after the judgment of foreclosure and before the sale are foreclosed if the lienor does not intervene in the action within 30 days” after the recording of the notice of lis pendens.

On November 26, 2007 a bank  recorded a lis pendens on certain property as part of a foreclosure lawsuit against a homeowner. On September 22, 2008, the bank obtained a final judgment of foreclosure. On September 27, 2012, the foreclosure sale was conducted with the Bank as the successful bidder. It later sold the property to Ober.

From July 13, 2009 through October 27, 2011, Town of Lauderdale-by-the-Sea, recorded seven liens on the subject property related to various code violations occurring after the entry of the final judgment.

Ober filed suit to quiet title, attempting to strike the liens against his property. The Town’s counterclaim sought to foreclose the liens. The trial court granted the Town’s motion, denied Ober’s motion, and entered a final judgment of foreclosure on the seven liens recorded prior to the judicial sale, as well as on three liens imposed after the sale of the property. Ober does not argue that those three post-judicial sale liens were discharged, and on remand the trial court may enter judgment on them.

The 4th Discrict Court of Appeals reversed holding:  [T]he recording of a notice of lis pendens ․ constitutes a bar to the enforcement against the property described in the notice of all interests and liens  unrecorded at the time of recording the notice unless the holder of any such unrecorded interest or lien intervenes in such proceedings within 30 days after the recording of the notice. If the holder of any such unrecorded interest or lien does not intervene in the proceedings and if such proceedings are prosecuted to a judicial sale of the property described in the notice, the property shall be forever discharged from all such unrecorded interests and liens.

A proper reading of section 48.23(1)(d) is, as the Florida Land Title Association suggests, that “when a foreclosure action is prosecuted to a judicial sale, that sale discharges all liens, whether recorded before the final judgment or after, if the lienor does not intervene in the action within 30 days” after the recording of the notice of lis pendens.

James Ober, appellant v Town of Lauderdale by the Sea, appellee, 4th DCA, No. 4D14-4597, 1/25/2017

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