The Florida Supreme Court on Thursday ruled in favor of mortgage lenders in a decision that homeowners’ advocates say will create renewed uncertainty for some borrowers about whether they can stay in their homes.
Mortgage lenders may file new foreclosure actions against borrowers who won foreclosure cases more than five years ago if the borrowers defaulted again within five years of the first case’s dismissal, the court ruled. Borrowers argued a five-year statute of limitations should apply. “People have a right to rely on statutes of limitation as bringing closure, especially after five years,” said Kendall Coffey of Coffey Burlington in Miami, who represented borrower Lewis Bartram. “That closure has been erased for hundreds of borrowers. While we appreciate the court’s consideration, we strongly disagree with their decision.”
