Oftentimes, third-party purchasers seek representation in a foreclosure case. This normally occurs when a homeowner’s association foreclosed on a subordinate lien, the property goes to auction, and the property is sold to a third-party purchaser. Subsequent to the sale, the Bank files a foreclosure action against the borrowers on the mortgage and names the third-party purchaser in the lawsuit, since the third-party purchaser took interest to the property prior to the bank filing a lis-pendens. As such, the third-party purchaser is an indispensable party. See U.S. Bank Nat’l Ass’n v. Bevans, 138 So.3d 1185, 1188 (Fla. 3rd DCA 2014). What are the rights of a third-party purchaser in the foreclosure case? Can a third-party purchaser even defend the foreclosure case against the bank? Many attorneys representing the banks do not think that a third-party purchaser has the ability to raise any defenses (such as standing) in a foreclosure case. In fact, the Pealer case that just came out of the Second DCA in Florida reaffirmed this notion and essentially held that third-party purchasers have no cognizable interest in the property other than the right of redemption under Fla. Stat. §45.0315. At any time before the filing of the certificate of sale, the Peelers “may cure the mortgagor’s indebtedness and prevent a foreclosure sale by paying the amount of money specified in the judgment, order, or decree of foreclosure.” § 45.0315. Pealer v. Wilmington Trust Nat’l Ass’n for MFRA Trust, 42 Fla. L. Weekly D646 (Fla. 2d DCA Mar. 17, 2017). However, not all is lost. There are other ways to defend from a third-party’s perspective that involve various procedural and evidentiary requirements that the bank must meet regardless of the legal interest of the Defendants. These include raising the failure to state a proper claim for incorrect or omitted allegations made in the bank’s complaint, attaching the proper documentation to their foreclosure complaint, producing the original note, and so on. It is always best to seek representation if you or someone you know is a third-party purchaser. Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems. Please contact our Florida foreclosure defense lawyer to see how we may be able to help you.
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