Re: Florida 5 Years Statue of Limitation
Passing the statute of limitations does not mean the debt is forgiven. It simply means the lender cannot seek obtain a judgment for the debt through the courts. Even if it was, it does not mean the creditor has to release their security interest on the home. If you refuse to pay the debt, they can foreclose. They may not be able to collect the debt but they can still foreclose on the house and take possession of the home. The debt and the lien on the house are two very separate issues.
I'm about 6 months away from reaching the 5 years from the point where I stopped sending my mortgage payments and my intentions are to try to keep my house under the 5 year Statue of Limitation. Please pardon my ignorance or lack of legal vocabulary but what my attorney told me is that after I have reached those 5 years I could file a case with the court and very possibly keep my house and don't owe any mortgage amount, only whatever amount is due on taxes since I would have been forgiven a debt I had and the IRS considers that as an income so if the day of tomorrow I sell or refinance the property then I would have to take care of the taxes owed.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.