Is a lender trying to foreclose because you allegedly defaulted on a second mortgage in Fort Lauderdale, Florida? Whether they have grounds to foreclose depends on several factors, including the Florida foreclosure statute of limitations.
It helps to have a proper legal defense when facing foreclosure. A Florida foreclosure defense lawyer at Loan Lawyers can review your case and explain your legal options in greater detail. We’re prepared to offer the defense you deserve. Contact us today to learn more.
What is the Statute of Limitations for Debt Lawsuits in Florida?
The statute of limitations for Florida foreclosure is five years. A bank or other lender has five years from a default to initiate a foreclosure.
Failure to make monthly mortgage payments is the typical form a default may take in this case. Be aware that in this context, every missed payment qualifies as a separate default under Florida law.
For example, perhaps you didn’t pay your mortgage in January. A lender has five years from that default to take legal action. However, maybe you also didn’t make your February mortgage payment. The bank now has five years from the February default to begin foreclosing.
Does this Statute of Limitations Apply to Second Mortgages?
Yes. Even if you’ve made timely payments on your first mortgage, mortgage lenders can take legal foreclosure action if you default on a second mortgage. The Florida foreclosure statute of limitations of five years still applies.
Some lenders charged off second mortgage debt during the Great Recession. They may have done so when homeowners couldn’t pay their second mortgages. Charging off these debts involves writing them off as losses. Lenders sometimes charge off a debt when the remaining balance on the loan is less than the home’s market value.
Other companies can buy debts that lenders have charged off. They may then attempt to foreclose on homeowners who might have assumed they no longer needed to pay those mortgages.
The zombie second mortgage charge off the statute of limitations in Florida is still five years. Thus, if the most recent default date is more than five years old, someone attempting to foreclose may have no legal right to recover a debt.
What Can I Do If I’m Being Sued?
Is a bank or other lender attempting to sue you to collect a debt or foreclose on your home? The statute of limitations deadline may have already passed. That said, you shouldn’t assume this is the case, as the stakes are incredibly high.
Contact an attorney now. The best way to respond to a potential foreclosure lawsuit is to secure a proper defense.
Contact Our Fort Lauderdale Second Mortgage Foreclosure Lawyers For Help
Loan Lawyers is a Fort Lauderdale foreclosure defense, debt defense, and bankruptcy law firm dedicated to protecting the rights of ordinary homeowners like you. We’ve helped thousands of Floridians get out of debt, defend against foreclosures, and more. A Fort Lauderdale foreclosure defense lawyer can offer you the same dedicated representation throughout the foreclosure process. Find out more about how we can help by contacting us online or calling us today for a free case review.
