Monday, May 23, 2016

Florida Appeals Court Temporarily Slams Brakes On 2nd Foreclosure Attempt On Same Property; No Proceedings Allowed Until Bankster Pays Off Homeowner's Court-Awarded Legal Fees From Earlier Dismissed Case

A recent ruling from a Florida appeals court serves as a reminder that, when a homeowner successfully obtains a dismissal of a foreclosure action and, in the process, obtains a court award ordering the bankster to pay the homeowner's legal fees, a subsequent foreclosure involving the same property cannot go forward until the legal fee award in the earlier case is paid.

Further, this is required even when the bankster in the earlier lawsuit tries to dodge paying the legal fees by subsequently assigning its note and mortgage to another bankster, so that it is the second bankster, not a party to the first foreclosure action, that is bringing the subsequent foreclosure lawsuit.(1)

For the court ruling, see Villalona v. 21st Mortgage Corp., No. 4D15-4151 (4th DCA May 4, 2016).
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(1) From the court ruling:
  • The defendant in a foreclosure action petitions for certiorari review of the circuit court’s order denying her motion for stay of the action. The defendant argues she was entitled to a stay because she had not been paid her attorney’s fees and costs incurred in defending an action previously dismissed by a first plaintiff, which later assigned the note and mortgage to the second plaintiff. We grant the petition, because the second plaintiff acquired not only the rights, but also the obligations, of the first plaintiff.

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