Bartram Decision Concerning Statute of Limitations on Foreclosure on Appeal to Florida Supreme Court

As previously reported here the 5th DCA previously held that essentially the 5 year statute of limitations on foreclosure really did not apply.  To summarize, the 5th DCA decided that the five-year deadline to collect started anew when each mortgage payment was missed. That essentially means the bank is under no deadline to refile for the life of the mortgage, typically 30 years, plus 5 years.

Before, if the bank filed a foreclosure in say 2007, and that case was dismissed in 2013 by the court (not for settlement), the bank could not file another foreclosure lawsuit as it was barred by the 5 year statute of limitations.  Without getting technical, the first time the bank tried to foreclosure, it accelerated the entire mortgage debt but failed to prevail in the lawsuit.

The 5th DCA misapplied the law, in my opinion, as said that each missed payment was a separate installment payment, and all the bank had to do was allege a default date in the new lawsuit in that 5 year period and then file the new lawsuit.  This was a way around the statute of limitations.

Now the Florida Supreme Court is hearing the case, and will hopefully overturn the incorrect decision that banks are now relying on.  The briefs in the case can be found here and scroll down to the case number SC14-1265 to see all of the briefs filed in the case to date.

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