Home Sweet Home: 5 Life Changing Facts You Need to Know to Stand Your Ground
1. When does the Statute of Limitations begin to run?
The Statute of Limitations begins to run when the bank files a complaint to foreclose or otherwise affirmatively communicates acceleration of the balance of the loan for the home to the borrower in writing.
2. How has Florida ruled on it?
One Florida court has held that when a first foreclosure action is dismissed, without prejudice, the Statute of Limitations begins to run with the filing of the first action, and continues to run in the absence of a modification or reinstatement.
3. What should I do to stand my ground?
When a bank files a foreclosure suit against a homeower you should file a specific document. The document should state that the bank cannot foreclosuse on your home because they did not start the foreclosure process within the five years. The best way to stand your ground is to have an attorney evaluate your case and file the appropriate document(s) on your behalf.
4. Does it apply to me?
If the bank files the action again before the expiration of the five years, the Statute of Limitations cannot be used as a defense to foreclosure. However, under certain circumstances the doctrine of Res Judicata may prevent a lender from bringing an action on the same defaulted payment.
5. What is Florida’s future regarding the statute of limitations?
The Florida Supreme Court is currently reviewing a case that will have a tremendous impact on the Statute of Limitations for foreclosure actions. Bartram v. U.S. Bank, Nat’l Ass’n, 140 So. 3d 1007 (Fla. 5th DCA 2014), cert granted, (Fla. Sept. 11, 2014)(No. SC14-1265).
For more information on the Five Year Statute of Limitations click here.