A New York judge recently dismissed a foreclosure case against a mother and daughter, ruling that the bank missed New York’s six-year deadline to file its lawsuit. The decision could mean mortgage payments disappear and the two own their home free and clear, more than eight years after their lender foreclosed on them.
State Supreme Court Justice William Rebolini decided in favor of the family, writing that U.S. Bank National Association was “untimely” in suing last year to take back the home. In May 2006, the family took out a $250,000 mortgage to fund home repairs, but shortly after one of the relatives left the home and the owner underwent two difficult surgeries. As a result, payments were missed.
The owner and her daughter applied for loan modifications four times, but lenders who bought and sold the loan denied their requests. A lender that previously held the mortgage sued to foreclose in March 2007, demanding the entire mortgage balance due. By calling in the loan, the clock started ticking on New York’s six-year statute of limitations for such lawsuits.
The lender could have used a legal tactic to stop the six-year clock, but failed to do so. In this case and others like it, the statue of limitations exists for a reason and there is an obligation on the part of the lender to bring the action on a timely basis. This seems to be a growing trend, as a number of homeowners in New York are asking judges to dismiss foreclosure cases because the statute of limitations has expired. Banks can avoid getting themselves in this situation by giving homeowners a loan modification, helping them cure their default.
In Florida, some courts have ruled lenders cannot bring foreclosures if certain criteria are met: the lender already filed for foreclosure, demanded payment of all the money borrowed, and lost its foreclosure case. If it fails to file another action within five years of the first lawsuit, the lender can no longer foreclosure and evict the residents, some courts have ruled.
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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.
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