The three year battle between Credo LLC and Wells Fargo Bank N.A. will not be coming to a halt any time soon. Florida’s Third District Court of Appeal wiped the slate clean on June 1, when it ruled that a new evidentiary hearing would take place.
The battle started in 2013, when Credo purchased a Miami home for $1 million through a judicial sale of the previous owner’s assets. The home had several liens on it at sale, and Credo paid off many of them, but Wells Fargo alleged that its lien still stood. The bank brought suit on Credo for $3.33 million that it claims is owed to them, plus interest and additional charges.
Credo answered the suit with a motion to redeem the mortgage by paying the remaining principal on the loan, which is where the case took its first of many interesting turns. A non evidentiary hearing was set following the filing of Credo’s motion, at which point Wells Fargo’s representation suffered a series of costly miscommunications.
The Initial Ruling
Throughout the evidentiary hearing Wells Fargo was represented by two different law offices due to what can only be considered bad timing, as it had just begun the process of switching from one law firm to another. The hearing concluded with Miami-Dade Circuit Judge Diane Ward ruling that Credo could redeem the debt for $3.35 million. A month later, the bank’s newly appointed law firm challenged the decision, but Credo paid off the mortgage the following day and stomped out any chance of foreclosure being pursued. Then, it sold the property to another buyer for a cool $6.15 million.
Back to Square One
In the appellate hearing, Wells Fargo held that it was owed more that $4.62 million, therefore the $3.35 million Credo paid to recover the mortgage would be inadequate. The Third DCA agreed, to an extent, ordering the case back to the evidentiary court to determine the exact amount that would need to be provided for a true redemption of the mortgage. The case thus far has certainly demonstrated the challenges that face both property buyers and lenders when debts are left unpaid.
If you have been dealt a foreclosure motion, do not face it alone. One of our expert Miami foreclosure attorneys can see you through it, and protect your rights every step of the way. Give us a call today to learn more.