It was a good day for a Dallas/Fort Worth-area property owner. The Lender originally made a short term interest-only type loan with a balloon payment due at the maturity date. Recently, the lender filed a notice of trustee’s sale giving its notice of its intent to foreclose. The only problem was that the lender had failed to act on the loan for many years. Foreclosure defense lawyer Walker M. Duke represented the property owner in the defense of the foreclosure. After digging into the loan documents, plus several years worth of communications and transactions between the owner and the lender, Walker noticed that the lender was time-barred from bringing a foreclosure.
“It was a black and white case–the lender did not attempt to foreclose within the 4 years limitations period. As a result, the lender is forever barred from foreclosing on this piece of property,” said attorney Duke. Because the 4 year statute of limitations period (the time in which a party must take action or lose their rights) had expired, any lien on the property relating to the original loan is essentially void, and the owners have the property virtually free and clear of any mortgage lien.
The owner did not realize that a statute of limitations defense was available, but that defense single-handedly prevented the scheduled foreclosure. This is just one of many reasons that homeowners facing foreclosure or difficulty with their lender should strongly consider professional legal counsel, as there may be many defenses or options available to them that only a foreclosure defense attorney might know.