Florida Court Rules in Favor of Bank in Foreclosure Defense Case
The First District Court of Appeal of Florida recently held that although HUD (Department of Housing and Urban Development) regulations are a condition precedent to foreclosure, borrowers must raise the issue and timely challenge any foreclosing bank’s compliance with the regulation in order to rely on these regulations in challenging a foreclosure. In this case, the bank sought to foreclose a mortgage secured by a promissory note issued to the borrowers. The loan note specifically contained a provision providing that if the borrower defaulted by failing to pay in full any monthly payment, then the lender could require immediate payment in full of the principal balance remaining due, as well as all accrued interest, also known as “accelerating payment.” HUD Regulations & Exemptions The mortgage established the bank’s remedies in the instance the borrower defaulted on the loan, subject to limitations set forth by HUD regulations. Specifically, the issue in this case involved the right for borrowers to have a face-to-face interview with the mortgagor under some circumstances, but only if the mortgaged property was not located within 200 miles of the mortgagee, its servicer, or a branch office of either (amongst other exemptions). The trial court ruled in favor of the bank’s argument that the right to a face-to-face interview did not apply because the branch did in fact exist within 200 miles of the property. Here, the appeal turned on both whether a HUD regulation is a condition precedent to foreclosure and whether compliance with the HUD regulations was properly and timely pled. First, the Appellate Court ruled that the HUD regulation was a condition precedent to foreclosure because contract provisions are conditions precedent or subsequent, where the express wording of the disputed provision conditions formation of a contract and/or performance of that contract on the completion of those conditions. Specifically, a condition precedent is an event that must take place before a contract is enforceable, while a condition subsequent is an event that may arise after the formation of a contract that allows for the termination of the contract. Here, the note expressly provided that it did not authorize the lender (bank) to accelerate on the loan when acceleration is not permitted by HUD regulations and the mortgage states that the bank’s right to foreclosure is limited by HUD regulations. In other words, the bank’s right to foreclosure on the mortgage arises when these conditions have been satisfied, making those conditions (the HUD regulations) a condition precedent. However, in this case, the court also found that the borrowers failed to timely raise it as an affirmative defense, and even if they had raised it in a timely fashion, the evidence supports that the bank wasn’t required to comply because the property was more than 200 miles from the bank and its servicing branches. Foreclosure Defense Attorneys Serving Orlando, Sarasota, and Tampa If a bank brings a foreclosure case on a homeowner, it will need to work with an experienced attorney to ensure that any and all regulations have been complied with in conjunction with the foreclosure action. If you are dealing with a foreclosure issue, contact HD Law Partners right away to discuss your options with one of our experienced attorneys. We serve clients all over Florida, and we’re here to discuss your options. Resource: edca.1dca.org/DCADocs/2015/2022/152022_DC05_03102017_091041_i.pdf Tags: Florida Foreclosure Defense Lawyer, Florida Foreclosure Defense Lawyers, Foreclosure Defense Orlando, Foreclosure Defense Tampa Posted in Foreclosure Defense | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us