Victorious Florida Foreclosure Victims Not Entitled To Legal Fees

Florida 4th DCA Rules Victorious Foreclosure Victims Cannot Collect Legal Fees From The Foreclosing Party

Florida foreclosure victims who beat their foreclosure are not entitled to attorney fees. The Florida 4th District Court of Appeals ruled homeowners cannot collect appellate legal fees despite being the prevailing party.

Borrowers Frederick and Jonelle Sabido successfully argued Bank of New York Mellon lacked legal standing to foreclose. Apparently, someone forgot to sign the promissory note and mortgage.

The successful Florida foreclosure victims then tried to collect legal expenses from Bank of New York Mellon. This is customary in most judicial foreclosure states when the lender plaintiff loses. It is also common in most lawsuits involving monetary damages or real property.

The Florida 4th DCA agreed that Bank of New York-Mellon lacked standing to foreclose. Yet the court denied the Sabidos their rights for costs under the under provisions of that same mortgage and Florida Statute Section 57.105(7).

Fourth District Court of Appeal Judge Robert M. Gross wrote in a decision Feb. 7:

The borrowers’ motion for fees is denied because the Bank of New York Mellon was not a party to the note and mortgage and because the borrowers successfully argued that the Bank of New York Mellon was not entitled to enforce the instrument containing the attorney fee provision.

Roy D. Oppenheim who represented the Sabidos suggested the ruling raised a red flag for foreclosure defense attorneys:

It basically means that any bank can bring a foreclosure and not worry about there being consequences for such egregious conduct. They are basically being told that they can file these willy-nilly and they will not be subject to attorneys’ fees.

Read more at MFI-Miami