The 5th DCA recently held in Velden vs Nationstar Mortgage, 5D16-3628 (January 12, 2018) that amounts beyond the 5 year statute of limitations period in foreclosure were not collectible.
The Florida Supreme Court in Bartram previously ruled that each mortgage payment missed was a new default upon which the bank could foreclose. But the Court did not address the payments that were more than 5 years old.
The 5th DCA clarified this finally finding that amounts more than 5 years before filing were not collectible by the lender, although the lender still foreclosed. The bank was entitled to collect the payments within the 5 year period before filing the complaint, plus all future payments under the acceleration.
This could be a strategy to use in defense of a foreclosure where the borrower wants to get rid of the house with a minimal risk of a deficiency judgment, or to mitigate the amount owed in the final judgment against the borrower.
Lizzie
It’s challenging to locate well-informed people on this subject, but you sound like you
understand what you’re talking about! Thanks