In issuing its opinion in Evergreen Partners, Inc. v. Citibank N.A., the Fourth District Court of Appeals (covering Broward and Palm Beach Counties) has adopted the via previously expressed by the Fifth District Court of Appeals in U.S. Bank National v. Bartram, that while payments relating to individual payment defaults that are more than five years old may be subject to the statute of limitations, each payment default that is less than five years old, creates a basis for a subsequent foreclosure and/or acceleration action. Specifically, in both Evergreen Partners and Bartram the Courts’ found the note and mortgage remain a valid and enforceable lien against the property, and do not, as a matter of law, constitute a cloud on the property supporting a quiet title claim.

Besides the obvious implications this could have for thousands of South Florida residents whose cases might have been dismissed for lack of prosecution or voluntarily dismissed by their lenders these cases could have serious implications for investors. Many investors have believed that they could acquire subordinate liens (i.e. Condominium / HOA, second mortgages, ect.) and then through foreclosure and a quiet title action obtain free and clear title to the underlying property.

Cases such as Evergreen Partner and Bartram present serious potential risks to many investors who might have believed that this method would be their road to riches. Whether you are a homeowner or an investor, considering purchasing a foreclosure via auction, call the Broward County pure play Real Estate attorneys at Benson Mucci and All Property Title & Escrow. We can provide you with an initial consultation and help you ensure that your purchase doesn’t ultimately turn into your own foreclosure nightmare.