The homeowner paid up and the HOA agreed to unwind - nobody told the winning bidder
A Florida appeals court reversed a trial court order that wiped out a foreclosure sale - without ever telling the buyer.
The Second District Court of Appeal ruled on October 23, 2026, that Real Estate Services Group, Inc. (RESG) had its due process rights violated when a homeowner and a homeowners’ association quietly unwound a foreclosure auction behind the buyer’s back.
The property sat in Hickory Lake Estates in Hillsborough County. The homeowner fell behind on monthly HOA fees, and the Hickory Lake Estates Owners’ Association placed a lien and sued to foreclose in February 2024. The court ruled in the Association’s favor on August 29, 2024, and scheduled a foreclosure auction for October 18, 2024.
RESG bid highest and walked away with a certificate of sale - the document confirming a buyer’s purchase at auction - from the Hillsborough County Clerk.
Five days later, the deal fell apart - for RESG, anyway.
On October 23, 2024, the homeowner wired the full amount owed to the Association’s lawyer. That same day, he asked the court to undo the sale. He and the Association submitted a joint order canceling the auction result and returning RESG’s funds - and asked the judge to sign it without a hearing.
Nobody told RESG. The judge signed without giving RESG notice or a chance to respond, killing the sale and blocking RESG from getting title to the property.
RESG found out, asked the court to throw out the order, and lost. It appealed.
The Second District reversed. Writing for the majority, Judge Villanti cited Florida cases holding that a foreclosure auction buyer holds a “protectable legal interest” from the moment the certificate of sale is issued - even before full ownership transfers.
“When a sale is vacated without notice to and an opportunity to be heard by the purchaser, due process is violated,” the court wrote, citing its 2015 decision.
The case goes back for a proper hearing - this time with RESG at the table.
RESG also argued the homeowner lost the right to pay off the debt and reclaim the property once the certificate issued. The appeals court did not rule on that, saying RESG had not raised it in the lower court.
For real estate investors and brokers advising auction buyers, the takeaway is plain: a certificate of sale carries constitutional protection, and no backroom deal can erase it without the buyer in the room.
The decision is subject to revision prior to official publication.
