Alerts and Updates

Florida District Court Issues Key Ruling in Mortgage Foreclosure Case

May 15, 2015

This decision may be a turning point where the Florida courts are recognizing that a borrower who does not pay cannot complain.

Previously, Florida appellate courts were strictly enforcing the acceleration requirements in mortgages. In Gorel v. The Bank of New York Mellon, Case No. 5D13-3272 (Fla. 5th DCA May 8, 2015), a Florida appellate court has now held that the failure of a default notice to specify a date not less than 30 days by which the default must be cured does not constitute a valid defense where the defective notice did not prejudice the borrower, because he made no attempt to cure the default. The court held that absent some prejudice, the breach of a condition precedent does not constitute a defense to the enforcement of an otherwise valid contract. This decision may be a turning point where the Florida courts are recognizing that a borrower who does not pay cannot complain. That is the law in Georgia, but until now, Florida has favored the borrower.

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