Since Florida’s courts were bombarded with foreclosure cases over five years ago, some homeowners who were sued have managed to remain in their homes without paying mortgages because of a law called the statute of limitations.
Certain Florida courts have declared that lenders will not be able to bring forth foreclosures, according to a set criterion. If the lender has already filed for foreclosure on a home, demanded payment of monies borrowed, lost the case, then failed to file another action within five years of the original suit, they will no longer be able to foreclose or evict the homeowner from their residence. However, other courts throughout the state disagree with this.
On October 6, the Florida Supreme Court will hear oral arguments regarding this matter and may issue an order to finally resolve this conflict. The outcomes are expected to vary per foreclosure case but homeowners are cautioned that in most cases, if they do not pay, they will not keep their homes. According to NBC 6 Investigators, many people are living in their homes without paying mortgage and it looks like they might be able to continue doing this.
One Dadeland man was only 19 years old when he received a loan of nearly $190,000 for an apartment in 2007. Shortly after the purchase, he was in a serious accident and was unable to use his leg for eight months. By then, the computer technician position he’d had was gone. Unable to make payments, his lender filed for foreclosure.
In February 2011, the case was thrown out when the attorney for the man’s lender, Chase Home Finance, failed to appear. Nearly two years later, the resident received a new foreclosure lawsuit notice. After seeking an attorney, the case was finally dismissed this past October, due to the statute of limitations law.
“We learned that there’s an actual statute of limitations on this kind of thing, five years from the initial filing,” the Dadeland homeowner said. He also said that he felt as though he did nothing wrong in this case. “It seems kind of un-American, honestly, if they can keep coming at me for something they’ve already lost on twice.”
A Miami woman bought a home near Coconut Grove in 2001. Shortly after the 2008 recession, she also had trouble making her mortgage payments. “There was a lot of back and forth with the bank,” the woman explained. In 2009 a foreclosure action was filed against her by her lender, Nationstar Mortgage. She stopped making payments, saving funds while she tried for a modification.
After a botched contract and miscommunications with the lender, the Miami woman sought legal help. The case was finally dismissed last June when Nationstar failed to appear before the judge. Since then, the lender has requested to reinstate the foreclosure, before the five year mark. She is appealing this action and if she is successful, she too might be living in her home without mortgage payments and fear of foreclosure.
While some homeowners prevail with the Supreme Court, it is still likely that they will need to face outstanding liens and claims by the banks. Some recommend that homeowners should not stop making payments, solely based on the hopes that the statute of limitations will expire. Now that the number of foreclosure cases has fallen to a manageable amount, it is likely that the banks that truly have a right to the property will be prepared for court and present adequate evidence to prove their cases.
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.nbcmiami.com/news/local/Five-Years-After-Foreclosure-Some-Keep-Homes-303817841.html