Many homeowners have been comforted by the thought that Florida lenders had a statutory limit of five years to foreclose on a property. The law used to be interpreted as: the lender has a limit of five years from the date of the note of acceleration, to foreclose on the property. This was great for homeowners who defaulted because if they remained under the bank’s radar long enough it would result in them being able to keep their homes while the lenders had their hands tied.
However, law is ever-changing and every day new regulations are being made and new case law is created that either supports or turns an old rule no its head. In this case, the Florida Appellate court made a decision that negatively impacts homeowners whom were part of the initial wave of foreclosures and were awaiting the five-year foreclosure deadline mark for some peace of mind.
In the case of US Bank National Association vs. Patricia J. Bartram, et al., the judge determined that the interpretation of the law was not that the bank had fives from the note of acceleration, which is generally sent out around the time the complaint is filed with the court, but instead the judge’s decision was that the lender had five years from the last missed payment. By definition, every month that the homeowner misses a payment the five-year period is renewed, creating an infinite loop.
At Graham Legal, we never relied on the bank missing their five-year mark. Our team of foreclosure defense attorneys has never used this method as part of our plan because it is more of a band-aid. The result of a missed five-year window is that no one rightfully owns the home. At Graham Legal we always find final foreclosure solutions for our clients.