Daily Archives: January 3, 2015

Too Late to Foreclose? re: Florida Mortgage Foreclosure Statute of Limitations

As many lenders know, Florida has a five year statute of limitations for mortgage foreclosures. This requires that a foreclosure lawsuit be filed within that amount of time following the borrower’s default. But what happens if a foreclosure is filed and then dismissed? Does the clock start again following the dismissal or does the lender still need to bring the second foreclosure suit within five years of the original default? At the moment, these appear to be open questions in Florida. Although the courts have provided some guidance, the question may not ultimately be answered until the Florida Supreme Court weighs in, which it is expected to do in 2015.

Earlier this year, the Fifth District Court of Appeal in U.S. Bank v. Bartramheld that after a foreclosure action was dismissed by the court, it could be re-filed based upon a new default that occurred after the dismissal of the suit, even if the original default which formed the basis of the first suit occurred more than five years ago. Under this “continuing default” theory, the dismissal nullified the acceleration of the loan such that payments would continue to come due each month after the dismissal and therefore the loan could be reaccelerated following a new default. Accordingly, the statute of limitations would then be five years from the new date of acceleration, allowing the lender ample time to bring a second foreclosure action.

Read on.

US Debt Soars By $100 Billion On Last Day Of 2014, Hits Record $18.14 Trillion

As of the last day of 2014, total US debt soared by $98 billion in one day (driven again by Social Security debt surging on the last day of the month to a record $5.117 trillion), and closing off 2014 with a new all time high total of $18.141 trillion in Federal debt – an increase of $136 billion in the month of December and $790 billion for all of 2014.

Source: Zerohedge

Source: US Treasury

9th Circ. Latest To Say No To Fannie, Freddie Transfer Tax

Law360, Los Angeles (January 02, 2015, 10:09 PM ET) — The Ninth Circuit has ruled that Fannie Mae and Freddie Mac are not liable for state and local real estate transfer taxes, rejecting Spokane, Washington’s constitutional challenge and becoming the eighth circuit court to hold that the companies’ congressional charters exempt them from the taxes.

In a published opinion issued on Dec. 30, a three-judge panel unanimously held that a general tax exemption granted to the mortgage securitization giants by Congress includes property transfer taxes — despite a clause requiring the companies to pay property taxes…

Source: Law360