Local homeowners are finding themselves in a “free” home because of the statue of limitations law surrounding foreclosures more than five years old.
A Maitland man owns a pool home with a tennis court. He hasn’t paid on his mortgage in over seven years and does not intend to pay out any more ever again. Owing over $140,000 for his loan, he says his situation is only right. “It was justice quite frankly,” the homeowner said. His initial lender was Federal Home Loan Mortgage who filed foreclosure on the man in 2008. Thereafter, the loan transferred over to Nationstar Mortgage.
“They sold my loan so many times no one knew who had the paperwork,” the Maitland homeowner stated. Cases have been dismissed based on the belief that banks have five years to file a foreclosure after the homeowner defaults and the lender requires the full balance to be paid out. It has been argued in these cases that the lender can’t foreclose again once this five year mark has passed.
Large banks and lenders alike are arguing against this, saying that they have far more time and that the five year “timer” resets itself each time a mortgage payment is missed by the homeowner. The Florida Supreme Court has been presented with the issue and they are scheduled to review the law in October.
Since 2007, Florida has had more than 3 million foreclosures filed, according to RealtyTrac. Some find it unfair for homeowners to get out of meeting their mortgage obligations, and then be rewarded with a free home. Still, others hold little compassion for the banks.
“I think it is what you would call poetic justice,” the homeowner added.
Although he still pays taxes and insurance for his home, it is far cheaper than his prior mortgage payments of $1,400 per month. Also, until the home is sold, the bank can keep a lien on his property.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Source: http://www.wftv.com/news/news/local/9-investigates-people-turning-foreclosures-free-ho/nmDhN/