Originally posted on Justice League:
A recent Florida Third District Court of Appeal opinion should put Florida mortgage lenders on notice: If a foreclosure action is dismissed without prejudice, the lender must affirmatively decelerate the loan or risk that the statute of limitations will run and bar a future foreclosure action.
In Deutsche Bank Trust Company Americas v. Beauvais, the Third DCA determined that a dismissalwithout prejudice does not decelerate a previously accelerated mortgage. While at first read,Beauvais may appear to conflict with the Supreme Court of Florida’s 2004 ruling in Singleton v. Greymar Assocs., the Beauvais Court in fact harmonized issues arising when foreclosure is not completed after acceleration with Singleton.
In Singleton, Florida’s Supreme Court had to decide whether a dismissal with prejudice would support a res judicata defense to a subsequent foreclosure action. The Court in Beauvais interpretedSingleton as holding that a dismissal with prejudice
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