It’s conceivable that a mortgage lender could take months or years to start a foreclosure process after a homeowner has stopped making payments. That said, it’s important borrowers get to know about the statute of limitations and the time limits it sets for various legal proceedings. Here’s a little more information about the statute of limitations and how it affects your first and your second mortgages.
What is the Time Limit Established by the Statute of Limitations?
A statute of limitations is an established time limit for starting a legal claim. There are various types of legal proceedings that include a statute of limitations. Each has a different time limit based on the kind of claim or action involved.
Let’s examine the statute of limitations as it relates to foreclosures. If a statute of limitations expires prior to a mortgage lender starting the foreclosure process, his or her claim legally becomes invalid. If this situation should arise, the mortgage lender isn’t authorized to foreclose on your home. But remember, time limits vary depending on the state you live in. Contact a real estate attorney for information.
More Important Information About the Statute of Limitations
In addition to differing time limits, remember that every state has its own statute of limitations – Florida’s statute of limitations for mortgages is five years. Although most states have a statute of limitations in the three-to-six-year range, some extend as far out as 15 years. Check your state’s statute of limitations for more information about how much time you have once you default on your payments.