Tag: Florida Foreclosure Defense Lawyers

The First District Court of Appeal of Florida recently held that although HUD (Department of Housing and Urban Development) regulations are a condition precedent to foreclosure, borrowers must raise the issue and timely challenge any foreclosing bank’s compliance with the regulation in order to rely on these regulations in challenging a foreclosure.

In this case, the bank sought to foreclose a mortgage secured by a promissory note issued to the borrowers. The loan note specifically contained a provision providing that if the borrower defaulted by failing to pay in full any monthly payment, then the lender could require immediate payment in full of the principal balance remaining due, as well as all accrued interest, also known as “accelerating payment.”

HUD Regulations & Exemptions

The mortgage established the bank’s remedies in the instance the borrower defaulted on the loan, subject to limitations set forth by HUD regulations. Specifically, the issue in this case involved the right for borrowers to have a face-to-face interview with the mortgagor under some circumstances, but only if the mortgaged property was not located within 200 miles of the mortgagee, its servicer, or a branch office of either (amongst other exemptions). The trial court ruled in favor of the bank’s argument that the right to a face-to-face interview did not apply because the branch did in fact exist within 200 miles of the property.

Recently, the Florida Supreme Court ruled that lenders can refile foreclosure cases against homeowners who are still in default, even if the case was initiated more than five years ago (i.e. past the statute of limitations). This effectively now gives banks in the state the right to bring cases back to life, meaning that delinquent Florida homeowners may now be getting foreclosure notices after years of delay (more than five years). This latest ruling effectively provides the lenders with as much leeway as they need to start foreclosure proceedings all over again, but it’s important to note that there are caveats to the ruling in terms of foreclosure defense.

What the New Foreclosure Ruling Means

This ruling has left many homeowners concerned, as some experts have indicated that this could allow the banks to resolve open foreclosures and place more and more homes up for sale. In general, when homeowners stop making payments, many of them hope to get their mortgage modified. However, lenders have the option of, instead, filing a foreclosure action.