I recently found out my business partner hasn't been making payments on one of my rental properties since 12/08,My attorney said at this point the bank hasn't done anything for some reason and the statue of Limitations is getting ready to run out.Thought it would be best to let things take there course.What exactly does that mean when it runs out?Is it mine free and clear? Can I ever sell at a profit?
Country relating to Question: United States
State (if USA): Florida
30k to a useless lawyer
Hello,Thank you for using JA..The Statute of Limitations for a creditor to collect on a written contract in FL is 5 years from the date of default, which is typically 30 days after a payment is missed. Since a promissory note is a written contract, if the lender didn't move to foreclose on it or sue within that time, their action is time barred and they wouldn't be able to collect..After the 5 years has passed, the owner can file a "quiet title" lawsuit to have the mortgage extinguished and would then own the property free and clear. Once the mortgage is extinguished, the owner could then sell it and keep any proceeds without having to pay the lender..So if the lender doesn't do anything before the SOL runs out, the owner could eventually end up with the property free and clear..
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Are there any specific reasons a "Quiet title" could be disputed or rejected?
Not if the statutory time period has lapsed on the enforceability of the Loan. When the SOL expires, it is an absolute bar on the lender trying to collect on the loan and it is then unenforceable. Since it is invalid and unenforceable, it can be extinguished with the quiet title suit..But if someone makes a payment on the loan, it starts the SOL all over again. So if you are going to go that route, it would be a good idea to make sure no one makes any kind of payment as it will reset the clock..
Please be aware that I am not entering into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, please do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.
12 yrs practice, Realtor, Landlord 23+ yrs
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