Supreme Court Allows Mortgage Lenders to Revive Foreclosures After Statute of Limitations has Run Out

by San Antonio Attorney

The Florida Supreme Court decided in favor of mortgage lenders allowing them to resurrect a time barred foreclosure whenever they want.  That means they can pursue a borrower even if the debt is already more than five years old.

The court said the statute of limitations is dynamic, not fixed, restarting every month a mortgage debtor does not update their payments.

Michele Stocker, a lawyer for the mortgage lenders, said in an interview that state Supreme Court’s ruling in effect overturns the unreasonable perception that people can stay in a house without paying after the statue of limitations has passed.  The decision can potentially help settle on many of foreclosure cases that have languished for some time.

The court decided on the case of Lewis Bartram, who had a $650,000 loan that he defaulted more than 10 years ago.  The mortgage was secured by a house located in Ponte Vedra Beach.

U.S.  Bank started the foreclosure process against him in 2006, but it languished after the bank’s law firm closed down.

Bartram was able to dismiss the case in 2011 arguing that the statute of limitations has prevented the bank from completing the proceedings it started in 2006.

In 2014, U.S.  Bank appealed that ruling, the Fifth District Court of Appeal in Florida decided in favor of the mortgage lender, which resulted in Bartram’s loss in his appeal to the state’s Supreme Court.

Estimations of the value of Florida’s Supreme Court’s decision could be up to $400 million of debt secured by real estate in the state.

When it comes to home foreclosure, retaining the services of a Real Estate Attorney San Antonio

early on helps make sure that you have more alternatives to choose from than what might be plausible options later in the process.

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