Florida's Fifth Circuit Court of Appeal's January 14, 2018 opinion in Velden v. Nationstar Mortgage clarifies how much a Mortgage Lender can collect if it misses the five-year statute of limitations deadline to file suit after the Borrower's breach of the mortgage contract by missing a payment.
A lender typically has five years after a borrower first defaults on a loan to sue for foreclosure. The Velden opinion holds that a lender can foreclose anew with each new missed payment giving the lender the right to accelerate the loan, and demand immediate full repayment or foreclose. The Borrower's argument to the contrary was that if the Lender does not sue within five-years of the Borrower's first missed payment, the statute of limitations had run and the lender could no longer foreclose. The Fifth Circuit rejected that argument, instead holding that each missed payment gives the Lender a new opportunity to foreclose.