Tuesday, May 7, 2013
What about when the Bank wrongly forecloses?
So you got a Summary Judgment in favor of the Homeowner that the Bank should not have foreclosed- now what?
In the bank’s view, the homeowner can’t resume making normal, monthly mortgage payments – not without paying all of the late charges, attorneys’ fees, and default interest since the alleged default, not to mention the monthly payments that accrued since the last payment was made.
The homeowner’s view, doing that would be ridiculous. Why should a homeowner who was wrongly declared in default have to pay default interest, late charges, and attorneys’ fees where those charges would have been unnecessary if the bank hadn’t wrongly declared the default
Judge William Levens of Hillsborough County 's Final Judgment not only denied a foreclosure, but it required the bank to reinstate the mortgage as of the date that payments stopped being accepted. All default interest, late charges, attorneys’ fees – POOF, GONE. The homeowner could resume making monthly, mortgage payments today as if the mortgage were never in default. http://pubrec3.hillsclerk.com/oncore/showdetails.aspx?id=16972127&rn=1&pi=0&ref=search
Bank appealed to 2nd DCA http://www.2dca.org/opinions/Opinion_Pages/Opinion_Pages_2013/April/April%2017,%202013/2D12-3051.pdf
The Second District makes this ruling, it is binding law for every circuit judge in Florida and affirmed Judge Levens position of putting the parties back in the financial positions they would have been in had the foreclosure not occurred. The appellate court affirmed the judge’s ruling that the mortgage should be reinstated retroactive to the date that the bank wrongly stopped accepting monthly mortgage payments.