According to Florida law, creditors such as mortgage lenders must file a lawsuit before a specific date to collect debt and foreclose on a property. If the creditor doesn’t meet the deadline, it might not be able to enforce that debt.
If you haven’t made mortgage payments and your creditor hasn’t filed a foreclosure action against you yet, check to see how much time it has before the deadline passes.
What are the Statutes of Limitations?The statutes of limitations are the laws that specify deadlines for various types of lawsuits. For example, if a creditors files a lawsuit against you after a deadline passes, you can use the expired statute of limitations as a viable defense.
What About Mortgage Foreclosures and Deficiency Judgments in Florida?A mortgage lender can only foreclose on a property if it has brought forth a lawsuit to the court. If the lender successfully receives a judgment of foreclosure, the court will then sell the mortgaged property at a foreclosure sale.
A lender can also request that the court enter a deficiency judgment against you if the property doesn’t sell for as much as it takes to pay off the amount of the original judgment. In this case, you would be liable for paying the difference owed.
What is the Time Limit for Foreclosures in Florida?
The lender has five years to file a lawsuit, which starts at the date of default.
What is the Date of Default in Florida?If you take a look at your mortgage loan documents, you will find your default date. But this usually starts at the time when you have failed to pay your mortgage when it’s due – or failed to pay it during an accepted grace period.
Basically, your lender has five years from the due date of the final payment to file a foreclosure action against you in Florida.