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  1. #1
    Join Date
    Oct 2013
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    Florida
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    Default How Long After Default Can You Sue on a Mortgage Note

    My question involves collection proceedings in the State of: Florida
    When I sold my house in 2004 I held a note for just under $20K, which is listed on the sale agreement. I also have a separate document stating that the note was supposed to balloon for full repayment in five years. Now, nine years later, the principal still has not been paid, although I have received regular monthly interest payments. The purchaser/debtor, although employed, claims inability to pay the note off and has not responded to my subsequent communication. Is there a statute of limitation on collecting the principal on this note? Would the debt become collectible by my heirs on my demise? What's my next best move with regard to collecting the principal on this note? Thanks!

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Is There a Statute of Limitation on Collecting This Debt in Florida

    Written contracts and promissory notes have a five year statute of limitations in Florida. You'd need to check with an attorney, but I presume the fact that they were making interest payments continues to affirm the loan so the you're within the statute. I also presume that you retained no security interest in the property, you'll have to sue to get your money. Yes your estate (or heirs) could sue if you die if the loan was still within the limitations.

  3. #3
    Join Date
    Oct 2013
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    17

    Default Re: How Long After Default Can You Sue on a Mortgage Note

    Quote Quoting Gazoxta
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    What's my next best move with regard to collecting the principal on this note?
    When does the contract say that default has occurred?

    If the debtor is in default you can proceed the next day.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: How Long After Default Can You Sue on a Mortgage Note

    The question is not how soon (you are right, the first time they did not make the agreed payment they are in default), but how long AFTER can he still pursue his claims.

  5. #5
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: How Long After Default Can You Sue on a Mortgage Note

    Quote Quoting flyingron
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    The question is not how soon (you are right, the first time they did not make the agreed payment they are in default), but how long AFTER can he still pursue his claims.
    I am pretty sure that as long as the interest payments are being made, that the statute of limitations has not started. It would be 5 years after they stopped making any payments at all.

  6. #6
    Join Date
    Oct 2013
    Location
    Florida
    Posts
    2

    Default Re: How Long After Default Can You Sue on a Mortgage Note

    The contract says that the period of the note is five years. The contract date was in April of 2004. So I'm supposing that it should have been paid by April of 2009. In case it matters (I have no clue), the debtor is no longer living in my old house. She lives elsewhere here in this area and rents the property "to cover the mortgage payment on it", she once told me. Yes, the interest payments continue; I got one yesterday, in fact. I'd be happy enough to sell the note at a discount, just to have closure on the thing. The principal is $19,900, by the way. Should I go to court for a judgment before I try to sell it? Or is it valid enough on its face to make that unnecessary? And where does one find a buyer? Clearly I have no background or experience in this area. Many thanks to all who have shared a thought.

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