Have you received a complaint for foreclosure?

Have you been served with a complaint for foreclosure and are unsure why?   Foreclosure can be viewed as the lender’s way of clearing title to the land, and it extinguishes the liens of any junior mortgagees. It is critically important that all interested parties are named as defendants in the complaint so that every proper party can protect his/her rights.  This holds true in a variety of circumstances even if you did not sign the loan.  Indeed, Courts have emphasized the right of interested persons in foreclosure cases to be heard. See National Equity Recovery Services, Inc. v. R.O.G. Investments, Inc., 965 So. 2d 230 (Fla. 3d DCA 2007). 

Who are the necessary parties to a complaint for foreclosure?

• Titleholders— These are the property owners. If the titleholders aren’t included in the complaint, the foreclosure judgment could be invalidated.

• Holders of liens or judgments recorded after the mortgage was foreclosed.

• Holders of liens or judgments against the mortgagor, recorded before the mortgage was foreclosed, if the mortgage was a purchase money mortgage. Purchase money mortgages take precedence over liens, even if the latter were recorded earlier.

• Condominium or homeowners’ associations pursuant to F.S. 718.116, 720.3085.

• Endorsers of the mortgage note are proper parties to foreclosure action, and the mortgagee doesn’t need to take separate action to seek a deficiency judgment against them after foreclosure.

• People claiming the property as homestead.

• Parties in possession of the real property, whether under a written or oral lease. See Commercial Laundries, Inc. v. Golf Course Towers Associates, 568 So. 2d 501 (Fla. 3d DCA 1990).

• Parties in possession of the real property as receivers. See Mantis v. Hinckley, 547 So. 2d 292 (Fla. 4th DCA 1989).

• Those holding an equity of redemption. All signatories to the mortgage should be named and served.

• Beneficiaries named in a will of a deceased mortgagor or heirs of an intestate mortgagor. See Pan American Bank of Miami v. City of Miami Beach, 198 So. 2d 45 (Fla. 3d DCA 1967) (see § 1.3.B.4.c).

• Subordinate easement or license holders.

• Any others whose interests in the real property are inferior to the mortgage lien.

Top Ormond Beach Foreclosure Defense Attorney

For more information, contact Ormond Beach foreclosure defense attorney Andrew J. Pascale at 877-667-1211. Please remember that this blog serves as a general resource and does not provide legal advice. It’s always advisable to consult an attorney for personalized legal guidance.