In Stoltz v. Aurora Loan Services, LLC, the Second District Court of Appeal ruled that Neustein Law Group successfully challenged the bank’s right to bring the foreclosure action, which resulted in a dismissal. In that case, Neustien Law Group successfully argued that Aurora Loan Services, LLC did not prove that they had the right to foreclose.

In HSBC Bank USA v. Magua, Neustein Law Group challenged a final judgment of this 2007 foreclosure case based on Hearsay evidence and lack of Standing. After Neustein Law Group filed its initial brief attacking the bank’s right to foreclose and the evidence used at trial, the bank filed a confession of error, resulting in another win for the homeowners.

The Fourth District Court of Appeal affirmed two more victories by Neustein Law Group against Deutsche Bank National Trust Company, as Trustee for Harborview Mortgage Loan Trust Mortgage Loan Pass-Through Certificates, Series 2007-5 v. Preddie and Deutsche Bank Trust Company Americas as Trustee RALI2006-QS6 v. Page.

The Fourth District Court of Appeal also reversed in part Lasala v. Nationstar Mortgage, LLC, due to the bank’s failure to prove the amount owed. In that case, Neustein Law Group successfully argued that the bank failed to prove the amount of damages sought in the Final Judgment. The case was remanded back to the trial court.

In 575 Adams, LLC v. Wells Fargo Bank, Neustein Law Group represents a non-borrower who was wrongfully denied his right to conduct discovery and take the deposition of the bank’s trial witness. The Third District Court of Appeal quashed the lower court’s order granting the bank’s Motion for Protective Order. This case affirmed that a property owner has the legal right to aggressively defend a foreclosure action even if he or she is not the original Borrower.

The attorneys and staff at the Neustein Law Group, PA have been defending foreclosures longer than most any other firm in the State of Florida. Led by Frederick Neustein, Esq. and Nicole Moskowitz, Esq., Neustein Law Group, PA is a boutique commercial litigation firm headquartered in Aventura, Florida in Miami-Dade County and has several convenient satellite offices located twenty minutes from wherever you are in Miami-Dade County, Ft. Lauderdale/Broward County, Boca Raton, West Palm Beach, Palm Beach County, and throughout the state of Florida. Their direct phone number is 305-531-2545 or (888)400-ATTY. Website is www.Stopforeclosurelawyer.com

Si no hay oposición, generalmente el demandante prevalecerá en un juicio sumario en una acción de ejecución hipotecaria. Sin embargo, es mucho más difícil para el demandante para prevalecer si el propietario está defendiendo la acción. El primer paso en la defensa de una moción para la sentencia sumaria es presentar una declaración jurada o algún relevante testimonio de deposición en oposición a la moción. También es aconsejable solicitar un memorando de derecho de oposición. Regla 1.510 exige que la declaración jurada en oposición ser presentada a mas tardar a las 5:00 p.m. 2 días hábiles antes de la fecha de la audiencia.

Cada caso es específico sin embargo, existen numerosas defensas afirmativas que pueden plantearse con el fin de derrotar a un juicio sumario. La clave es asegurarse de que son conscientes de todo el potencial que tiene defensas y presentar una declaración jurada oportunamente.

Sin embargo, al leer en su totalidad, es mucho más difícil para un demandante a obtener una sentencia definitiva mediante el presente estatuto. 702.10(1)(a)(3) afirma que la orden enviada por el tribunal demandado a alertas aparecen en una orden para mostrar causa audiencia deberá declarar que la Interposición de defensas por una “moción, sensible escrito, una declaración jurada, u otros papeles antes de la audiencia para demostrar la causa que plantear una verdadera cuestión de hecho material que impediría la entrada de sentencia sumaria o que constituyen una defensa legal a la ejecución hipotecaria constituirá motivo para no entrar en el tribunal de sentencia definitiva.” Por este párrafo, parece que la mera presentación de algún tipo de defensa es suficiente para derrotar a una orden para mostrar causa. Sin embargo, esto es justamente lo que la orden tiene el estado.

702.10(1)(b) reitera que “[i]f un acusado archivos por una moción defensas, una respuesta verificada, declaraciones juradas u otros documentos o presenta pruebas en o antes de la audiencia que plantear una verdadera cuestión de hecho material que impediría la entrada de sentencia sumaria o que constituyen una defensa legal a la ejecución hipotecaria, tal acción constituye la causa e impide la entrada de sentencia definitiva en la audiencia para demostrar la causa.” (énfasis agregado). Por la simple lectura de los estatutos, una presentación de algún tipo de defensa impedirá la entrada de sentencia definitiva a la orden para mostrar causa la audición.

In recent months we have been seeing more and more Plaintiff’s firms attempting to obtain final judgment through the use of Florida Statute 702.10. The reason being is that it can often be quicker than going for summary judgment or trying to obtain judgment at trial. It works like this: Plaintiff will file a Motion for Order to Show Cause for Entry of Final Judgment of Foreclosure and the court will review the file in chambers and without a hearing. If the court “finds that the complaint is verified, complies with s. 702.015, and alleges a cause of action to foreclose on real property, the court shall promptly issue an order directed to the other parties named in the action to show cause why a final judgment of foreclosure should not be entered.” Florida Statute 702.10(1). An order to show cause hearing is then held whereby the court will determine whether or not to enter final judgment.

However, when read in its entirety, it is much more difficult for a Plaintiff to obtain a final judgment using this statute. 702.10(1)(a)(3) states that the order sent out by the court alerting defendant to appear at an order to show cause hearing must state that the filing of defenses by a “motion, responsive pleading, an affidavit, or other papers before the hearing to show cause that raise a genuine issue of material fact which would preclude the entry of summary judgment or otherwise constitute a legal defense to foreclosure shall constitute cause for the court not to enter final judgment.” Per this paragraph, it appears that the mere filing of some sort of defense is enough to defeat an order to show cause. However this is just what the order must state.

702.10(1)(b) reiterates that “[i]f a defendant files defenses by a motion, a verified answer, affidavits, or other papers or presents evidence at or before the hearing which raise a genuine issue of material fact which would preclude entry of summary judgment OR otherwise constitute a legal defense to foreclosure, such action constitutes cause and precludes the entry of final judgment at the hearing to show cause.” (emphasis added). Per the plain reading of the statutes, a filing of some sort of defense will preclude the entry of final judgment at the order to show cause hearing.

Much of the case law maintains that the sufficiency of affirmative defenses should be considered after the close of discovery. There is logic in this in that obviously the defendant does not know everything about the case and does not have all of the facts. The purpose of discovery is to “discover” new facts and pieces of information that you were not aware of previously. At that point the court would then be able to determine whether the defendant has uncovered evidence and fact, which are sufficient to support the affirmative defense it pled. However, many plaintiff’s attorneys, using Florida Rule of Civil Procedure 1.140(f), attempt to strike the defenses as “redundant, immaterial, impertinent, or scandalous matter from any pleading at any time.” However, the proper inquiry as to an affirmative defense (prior to the close of discovery) is whether it is “legally sufficient on its face.” Citizens & S. Realty Investors v. Lastition, 332 So. 2d 357, 358 (Fla. 4th DCA 1976). The purpose of the affirmative defense is merely to put the other side on notice of what is required to be proved in order to win. It essentially gives the moving party a chance to prepare.

Obviously it is necessary for the defendant to file affirmative defenses. If they don’t, they are basically conceding the case and there was not point to ever hire an attorney in the first place. However, motions to strike on the other hand really serve no effective purpose other than give plaintiff’s attorney a chance to rack of billing. They could easily just file a reply in opposition to the affirmative defenses but they don’t. The reason they don’t is simple: money.

Una reclamación de lien equitativa puede basarse en dos teorías: la preclusión equitativa o enriquecimiento injusto. Si perseguir una reclamación basada en el enriquecimiento injusto el partido debe establecen los elementos necesarios: 1) el demandante confirió un beneficio en la parte demandada; 2) El acusado tiene conocimiento del beneficio; 3) el demandado acepta o retenido el beneficio; y 4) sería injusto para el demandado para conservar el beneficio sin pagar por ella. Una reclamación basada en la distribución equitativa de estoppel debe demostrar que hay pruebas de fraude, falsedad, o algún tipo de práctica fraudulenta afirmativa.

Arguably the primary reason that the Plaintiff’s appoint GAL’s is to ensure that they have clean title when they eventually go to sell the property. If not all parties were named in the foreclosure action or heirs of the borrower were never made aware of the lawsuit, then subsequent buyers may be leary about purchasing the property due to the fact that other people may still have an interest in the property. So really, Plaintiff’s appoint a GAL to make sure they can get insurable title after the foreclosure process is finished.

However, many Plaintiffs overlook the need to appoint a GAL and allow the foreclosure process to go to judgment without naming all parties. This presents a possible defense. While the judge and court may not find that it is a defense that you as a Defendant have or can assert, the bank will likely want to stop the proceeding and amend the complaint to make sure that all parties have been served thus buying you more time. Often the Defendant gets stuck doing the Plaintiff’s work for it but it can benefit you in the long run.

• The subrogee (party seeking subrogation) must pay the debt to protect its own interest.
• The subrogee must not act as a volunteer.
• The subrogee must not be primarily liable for the debt;
• The subrogee must pay off the entire amount of the debt; and
• Subrogation must not harm the rights of any third party.

Equitable subrogation is most commonly invoked by companies that refinance a mortgage. The refinancing company may pay off the original lender and as such, they want to have the rights. Put differently, equitable subrogation is available to substitute (subrogate) a refinancing lender to the position of the mortgage or lien that the lender satisfied. This second lender, who anticipated taking the subrogated position, is now permitted to take the lien priority of the loan it satisfied.

This issue has been the source of much litigation in recent years. One issue is that of second mortgages who argue that after the first mortgage is satisfied, then they are next in line. Unfortunately, the Appellate Courts have not weighed in on equitable subrogation and most of the case law we have is from the early 1900’s. As we are seeing more and more mortgages that are void, the issue of equitable subrogation is coming up more frequently and hopefully more case law will come down soon.

Además de la importancia de actuar con rapidez, también es importante que “conservar el registro.” Para preservar una cuestión en apelación debe hacer objeciones específicas y oportunas, pretenden excluir evidencias sobre el registro y obtener sentencias definitivas sobre las mociones y objeciones entre otras cosas. También necesitará un reportero del tribunal presente en las audiencias con el fin de tener una transcripción para el tribunal de apelación para la revisión. Sin un reportero del tribunal, que será muy difícil superar la decisión de la corte de primera instancia en apelación.

La mejor defensa que tiene es ser proactivo y preventivo. Sin embargo, es muy difícil para un pro se acusado a conocer exactamente qué necesita hacer para asegurar que pueden triunfar a nivel de apelación en caso de ser necesario. De hecho, muchos abogados experimentados no saben cómo conservar el registro. Todo esto es para decir que sólo porque usted perdió en juicio o sentencia sumaria no significa que estás sin opciones.

La verdad del asunto es que, a menudo, el juicio de los jueces y tribunales, se equivoca. Cada situación es diferente, pero se tarda un abogado calificado para poder diseccionar un caso y determinar si la interposición de un recurso o no está en su mejor interés. Un experimentado abogado de apelación puede sin duda ayudar a usted después de la sentencia ha sido introducido incluso si éstos no fueran su abogado previamente. Sin embargo, es altamente recomendable que usted obtenga de un abogado antes del juicio que está siendo introducido a fin de asegurarse de que tiene la mejor oportunidad de ganar a nivel de apelación en caso de ser necesario.

However, you may file a Motion to Set Aside a Clerk’s Default. Florida Rule of Civil Procedure 1.500(d) states that, “[t]he court may side aside a default, and if a final judgment consequent thereon has been entered, the court may set it aside in accordance with rule 1.540(b).” Under rule 1.540(b) a default final judgment may be set aside if you can prove that the failure to file an answer was due to the following: 1) excusable neglect 2) you have a meritorious defense and 3) you acted with due diligence to seek relief from the default.

While proving these three factors is certainly not impossible, we like to argue that Rule 1.500(d) draws a distinction between a clerk’s default for failing to file any paper in the action and default final judgment which is essentially an adjudication on the merits (end of the case). Arguably Rule 1.500(d) says that a final judgment must be set aside pursuant to 1.540(b) whereas a clerk’s default may be set aside liberally by the court. What we argue to the court if we are trying to set aside a clerk’s default (non-final judgment) is that the three factors listed above are not relevant and that the court may set aside the clerk’s default liberally. We have been very successful in doing so.

It is well settled case law that the court’s prefer to decide a case on the merits rather than a technicality which is what a clerk’s default is. There may be many reasons why you failed to file an answer or response. Maybe you did not know you needed to or were looking for an attorney and the twenty days went by. Regardless, you should be able to defend yourself, which is what we argue to the court. It is certainly possible to set aside a clerk’s default and a default final judgment however, like most things in the law, time is of the essence.

https://www.hmpadmin.com/portal/programs/hamp.jsp

Abajo HAMP, el préstamo se modifica para hacer su pago mensual de la hipoteca no más del 31% de los brutos (antes de impuestos) de ingresos. Si usted es elegible, la modificación se modifica permanentemente los términos originales de su hipoteca. La gente en el programa HAMP suelen reducir sus pagos mensuales por un promedio de más de $530 cada mes.

Por https://www.makinghomeaffordable.gov/steps/Pages/step-2-program-hamp.aspx, usted puede ser elegible para el HAMP:

• Si usted está luchando para hacer los pagos de su hipoteca debido a dificultades financieras.
• Que son delincuentes o en peligro de caer detrás de su hipoteca. Usted obtiene su hipoteca en o antes del 1 de enero de 2009.
• Su propiedad no ha sido condenado.
• Que adeudan hasta $729,750 en su residencia principal o de uno a cuatro unidades propiedad de alquiler (límites de préstamos son mayores de dos a cuatro unidades propiedades).

A fin de aplicar necesitará proporcionar a su compañía hipotecaria con información acerca de su hipoteca y finanzas. Cada situación es diferente, pero usted debe estar preparado para proporcionar información sobre sus ingresos, activos, gastos, deuda y penurias. El siguiente enlace proporciona una lista completa de los documentos que puedan ser necesarios para proporcionar

https://www.makinghomeaffordable.gov/steps/pages/step-3-prepare.aspx

La fecha límite para las solicitudes es el 31 de diciembre de 2016. Mientras que usted puede trabajar y presentar la solicitud usted mismo, muchos han encontrado que es útil para trabajar con una agencia aprobada por HUD agencia de asesoría sobre la vivienda o el procurador de ejecución hipotecaria. Si usted está luchando para hacer los pagos y actualmente se embargó o el temor a la exclusión es probable, el HAMP programa puede ser una opción para usted.

Think of an escrow account as a type of forced savings. Generally, the lender will divide the cost of your anticipated property tax by 12 and then collect that much each month in addition to your payment for principal and interest. The lender generally requires this in order to secure their collateral. It wants to make sure that the property taxes are paid because a tax lien would supercede their own. Likewise, it wants to make sure there is adequate insurance on the home in the event that a fire or something happens to its collateral. There is nothing inherently wrong with the idea of an escrow account. In fact, it is probably in your best interest to have one to ensure that your taxes and insurance is paid each month. However, the issue becomes whether or not the lender was requiring you to pay too much into the escrow account, which may have contributed to your defaulting on the loan and ultimate foreclosure action.

Section 10 of the Real Estate Settlement Procedures Act (RESPA) limits the amount of money a lender may require the borrower to hold in an escrow account. RESPA also requires the lender to provide the initial and annual escrow account statements. It is certainly not unheard of that the lender may be requiring too much money into your escrow account. There is a formula that the lenders must follow and a maximum they are allowed to charge. It you believe your lender is charging to much you do have certain remedies such as making a “qualified written request” to the lender concerning the servicing of the loan account.

This is just one of many options available. However it is best to consult an experienced foreclosure attorney. He or she can help figure out if you were charged too much and can also get part of the amount waived at or before trial.

Hipotecas: bienes muebles o inmuebles de propiedad de un funcionario militar antes del servicio no puede ser vendida, la hipoteca o la incautación, basado en el incumplimiento de un contrato/nota durante el período de su servicio militar o 9 meses después sin una orden judicial. La corte tiene la facultad de suspender la ejecución hipotecaria procedimiento si la acción de juicio hipotecario se presentó un funcionario militar mientras está en servicio activo.

Propietario/inquilino, el propietario está prohibida de desalojar a un militar, miembro o sus dependientes de los locales que están ocupados o destinados a ser ocupado como residencia principal durante un período de servicio militar salvo por una orden del tribunal.

Sentencias en rebeldía: Militar los miembros pueden pedir que se anuló las sentencias por defecto mediante el siguiente: (1) que la sentencia fue introducido en servicio activo o en el plazo de los 60 días siguientes, (2) que el miembro ha solicitado a impugnar la sentencia mientras se encontraba en servicio activo o en un plazo de 90 días de la puesta en servicio, (3) que el miembro no aparecen anteriormente a impugnar la sentencia, y (4) que el miembro no tenía una defensa válida contra el reclamo contra la que no se podía presentar en el servicio militar.

El anuncio de venta deberá ser publicada una vez a la semana durante dos semanas consecutivas en un periódico de circulación general y publicado en el condado donde la venta se va a celebrar. La segunda publicación debe ser de al menos cinco días antes de la venta. Ley de la Florida 45,031 estados que el aviso debe contener: a)

una descripción de la propiedad en venta.
(B) El tiempo y el lugar de venta.
(C) una declaración de que la venta se hará de conformidad con la orden o sentencia definitiva.
(D) El título de la acción.
(E) El nombre del empleado de la venta.
(F) una declaración de que cualquier persona que invoque un interés en los excedentes de la venta, si es que hay alguna, que el dueño de la propiedad a la fecha de la litispendencia debe presentar una reclamación en un plazo de 60 días después de la venta.

Si alguno de estos requisitos no se cumplen, la venta puede ser declarado nulo. Sin embargo, si no hay objeciones a la venta son presentadas dentro de los 10 días después de presentar el certificado de venta, el empleado será el certificado de título. Además de la falta de aviso de la venta o el incumplimiento de la notificación de la venta, usted puede tener otras defensas que le ayudará a usted a defender la acción de juicio hipotecario y salvar su casa.

The notice of sale must be published once a week for two consecutive weeks in a newspaper of general circulation and published in the county where the sale is to be held. The second publication must be at least five days before the sale. Florida Statute 45.031 states that the notice must contain:

(a) A description of the property to be sold.

(b) The time and place of sale.

(c) A statement that the sale will be made pursuant to the order or final judgment.

(d) The caption of the action.

(e) The name of the clerk making the sale.

(f) A statement that any person claiming an interest in the surplus from the sale, if any, other than the property owner as of the date of the lis pendens must file a claim within 60 days after the sale.

If any of these requirements are not met, the sale may be declared void. However, if no objections to the sale are filed within 10 days after filing the certificate of sale, the clerk will file a certificate of title. In addition to lack of notice of the sale or failure to comply with the notification of sale requirements, you may have other defenses that will help you in defending the foreclosure action and saving your home.

¿Por qué los prestamistas usan MERS?
Al igual que la mayoría de las cosas, la respuesta es el dinero. Cada estado y condado tiene distintas normas cuando se trata de las transacciones inmobiliarias, y nivel de condado requisitos inscripción. Muchas de las grandes instituciones operan para hornear en numerosos estados y es que es difícil, o por lo que dicen, que cumplan con todos y cada uno de los estados y el condado requisito y porque los títulos respaldados por hipotecas’s) se venden con frecuencia, los bancos se cansó de pagar un canon cada vez grabación el MBS cambió de manos. Por lo tanto, MERS se creó para servir como propietario del registro (o del propietario del candidato) de la hipoteca, lo que permitió los prestamistas e inversionistas que son las partes interesadas a fin de evitar la necesidad de asignaciones de archivos cada vez que el MBS se vendió, lo que reduce los costes.

¿Cómo afecta esto a los propietarios?
MERS ha sido muy criticada por las que sólo se plantea una amenaza catastrófica de declararse en quiebra. Esto podría significar que los millones de hogares que actualmente tiene en cartera pasaría a la quiebra de la empresa inmobiliaria y estén disponibles para satisfacer sus créditos de los acreedores. No es habitual que se pudiera cerrar MERS en nombre propio. De hecho, en 2011 MERS cambió su política y no debe haber ningún cambio más hipotecas. Sin embargo, esto no quiere decir que MERS no se enumeran en una hipoteca o que será denominado como demandante en la acción de juicio hipotecario.

Sinceramente, MERS es un poco confuso y Florida tribunales entidad aparecen confusos en cuanto a la forma de la regla cuando un acusado problemas como el no tener MERS. Cada situación es diferente y la hipoteca y hay muchos factores que pueden entrar en si o no el propietario se ve afectado por los tipos que aparecen en su hipoteca. Sin duda, es sospechoso que se enumeran en las hipotecas, pero la reclamación para no ser el prestamista o demandante principal. Tenemos la sospecha de que se producirá un gran litigio en el futuro en relación con los tipos de cambio de mercado y su papel en el sector hipotecario.

(a) Issuance. When a judgment or order is for the delivery of possession of real property, the judgment or order shall direct the clerk to issue a writ of possession. The clerk shall issue the writ forthwith and deliver it to the sheriff for execution.

After the bank, lender or third-party purchaser has obtained title to the property, they will file a Motion to Issue Writ of Possession. This is essentially the last step in the foreclosure process before the new owner takes possession of the home. Once the judge signs the writ, it is given to the sheriff who will then come to your home and post the writ on your door. After the writ is posted, you have 24 hours to vacate the home. Often the writ is posted on a Thursday or Friday, which gives you the weekend to vacate, however, the sheriff is permitted to post the writ during any weekday.

Obviously you want to challenge the foreclosure action before the bank files a Motion to Issue Writ of Possession. By the time the writ is issued, your options are much more limited. However, an attorney may be able to negotiate with the bank to stay the issuance of the writ for another 30-60 days. This means that you will have time to prepare to move and will not be given just 24 hours to leave your home. An attorney may also file a Motion to Stay Writ of Possession. More than likely the judge will set a hearing on the Motion to Stay Writ of Possession and allow the party to present arguments as to why the writ of possession should not be issued.

While it is certainly best to challenge the foreclosure action prior to the writ being issued that does not mean you are without defenses. Similarly, if you are a tenant and a writ of possession has been issued, you have rights and may challenge the writ. Like every foreclosure/real estate dispute, the best course of action is to seek legal advice as soon as possible.

While it is certainly best to challenge the foreclosure action prior to the writ being issued that does not mean you are without defenses. Similarly, if you are a tenant and a writ of possession has been issued, you have rights and may challenge the writ. Like every foreclosure/real estate dispute, the best course of action is to seek legal advice as soon as possib

In U.S. Bank v. Bartrum, the cased was dismissed and five years had passed since the original default date. Bartrum argued that the bank could not bring another foreclosure action due to the statute of limitations. However, the Fifth DCA held that the lender was permitted to bring a new foreclosure action based on the theory that every missed payment after the date of dismissal was a ‘new’ default date and created a new cause of action. This case is currently pending before the Florida Supreme Court and will be heard later in the year. Unfortunately, many counties have followed the ruling in Bartrum and agree with the idea that each new default date creates a new cause of action.

The potential good news for homeowners is that the Third DCA recently held in Deutsche Bank Trust Co. Americas v. Beauvais that the lender is barred by the statute of limitations when a case is dismissed without prejudice and five years has passed since the original default date. This means that the lender cannot keep foreclosing on the same property after the five years is up. The bad news is that the Third DCA, possibly doubting its own ruling, granted a Motion for Rehearing, which will be heard in the coming months and may lead to a reversal of its prior decision.

As for now, most courts continue to side with Bartrum and its predecessors, which hold that after a dismissal, each subsequent default creates a new cause of action. Clearly this nullifies the statute of limitations and leaves many wondering the relevance of even having a statute of limitations. We will just have to wait and see what the Third DCA decides and more importantly, what the Florida Supreme Court decides in the Bartrum.

And then imagine finding out that the bank made a stupid, careless mistake. And because of that mistake, you get to keep your home – with no mortgage.

That’s what almost happened to the property owner in a recent Florida Court of Appeal case.

In Deutsche Bank National Trust Company v. Avila-Gonzalez, the bank filed a foreclosure case in 2009, after the borrower defaulted on her mortgage. The bank didn’t attach the promissory note to the lawsuit, claiming that it was lost. It filed sworn affidavits about the lost note, and in response to discovery requests, it said the note was lost. Because the note was missing, the borrower spent extra time and money trying to get information from the bank about the note.

In December 2011, the bank realized that the note was not lost after all. The bank’s servicing agent had it in its vault the entire time.

The bank did not amend its lawsuit to say that the note had been found, nor did it withdraw its two affidavits about the lost note. Because of this, the trial court issued an order requiring the bank to show cause why the case should not be dismissed for fraud upon the court.

Before the hearing on that issue, the trial date arrived. Both parties mistakenly thought the trial had been continued to a later date, and neither of them showed up. The court dismissed the case without prejudice. That meant that the bank could re-file its foreclosure suit if it wanted to.

The court then held the hearing on the order to show cause. Testimony established that the note was in the servicer’s vault before the foreclosure case was filed. The court set aside its previous dismissal, dismissed the case with prejudice and cancelled the mortgage. When a case is dismissed “with prejudice,” it is permanently dismissed and the lender can’t file a new lawsuit based on the same loan default.

This was a major victory for the property owner, but it was short lived. The court of appeal sympathized with the trial court’s frustration and criticized the bank for wasting the court’s and counsel’s time. But it said that the bank’s negligence didn’t amount to fraud upon the court.

The appeals court said the trial court should not have given the property owner a “lottery like windfall” by cancelling the note and mortgage. The correct remedy was to compensate the property owner for any additional attorneys fees she accumulated because of the lost note issue.

The court also reversed the dismissal with prejudice because the trial court’s order did not contain specific findings about the bank’s lawyer’s misconduct.

The bank’s “astounding negligence” cost it a lot of time and money – and this case shows how a bank’s mistakes can be a big help to the borrower in a foreclosure case.

The Neustein Law Group, PA of Aventura, FL and has convenient offices in downtown Miami, Dadeland, Fort Lauderdale, Boca Raton, West Palm Beach and throughout the state of Florida.

And then the judge bangs his gavel and says “sustained,” or “overruled,” and the trial continues. After watching this, you may have understood that “hearsay” involves repeating something that someone else said.

But you may not realize that hearsay can work to a homeowner’s advantage in a foreclosure lawsuit.

In Kelsey v. Suntrust Mortgage, Inc., the lender obtained a default judgment of foreclosure. Default judgments are common when the borrower does not answer the foreclosure lawsuit. There is no trial, but the lender still must introduce certain evidence: the note and mortgage, the acceleration letter sent to the borrower, and evidence of the amount owed on the note.

And that’s where hearsay comes in. In a court proceeding, any statement that was made outside the courtroom is considered hearsay if it’s offered as proof of the statement’s truth. For example, if your friend told you that Sally stole $100, hearsay rules would prevent you from using your friend’s statement as a basis for testifying in court that Sally is a thief.

Hearsay rules don’t just apply to oral statements. They also apply to documents if a party is using a document to prove that the information in the document is true. That means that most documents are considered hearsay unless they are “authenticated” by a witness. Sometimes, the witness will testify that he or she prepared or signed the document.

In foreclosure cases, most documents are authenticated and admitted into evidence under the business records exception to the hearsay rule. A custodian of records testifies that he or she is familiar with the way records are prepared and kept by the lender, and that this document was prepared according to that ordinary business practice.

How does this help a borrower? Since mortgages are often assigned from one lender to another, lenders may have a difficult time producing a witness who has sufficient knowledge to authenticate the loan documents and payment history.

That’s what happened in the Kelsey case. The only witness was a mediation litigation specialist who said that she knew nothing about this loan, had seen the note for the first time on the day of the trial, and had only reviewed the mortgage file when she found out the case was being tried. She relied on a proposed order prepared by someone else to testify about the amount owed.

The homeowners objected to the litigation specialist’s testimony. They said she should not have been allowed to testify because she not show that she was a custodian of records or that she had personal knowledge of the documents. The trial court overruled their objection, admitted the documents into evidence, and entered a foreclosure judgment against the homeowners.

On appeal, the Florida Court of Appeal agreed with the homeowners. It ruled that the documents were hearsay, did not have the proper authentication, and should never have been allowed as evidence.

The Banks have Lawyers. You should have a Lawyer on your side.

The Neustein Law Group, PA of Aventura, FL and has convenient offices in downtown Miami, Dadeland, Fort Lauderdale, Boca Raton, West Palm Beach and throughout the state of Florida.