Enforcing Acceleration Clauses in Florida
An acceleration clause gives a Florida mortgage lender the right to demand immediate payment of the entire outstanding balance upon borrower default. Enforcement requires strict compliance with both the contractual terms and Florida's foreclosure statutes.
Prerequisites to Acceleration
Before accelerating a Florida mortgage, the lender must satisfy several conditions. The note or mortgage must contain an acceleration provision. A qualifying default must have occurred. The lender must send a default notice conforming to the instrument's requirements, typically specifying the breach and providing 30 days to cure. Only after the cure period expires without remedy can the lender declare the full balance immediately due.
Borrower Defenses
Florida courts have developed robust defenses to improper acceleration. The most common include failure to comply with notice and cure provisions, waiver through a pattern of accepting late payments, standing challenges based on improper assignment of the note, and statute of limitations defenses. The Florida Supreme Court's decision in Bartram v. U.S. Bank clarified that dismissal of a foreclosure action de-accelerates the debt and resets the limitations period.
Related Terms
Barnes Walker Real Estate
Barnes Walker defends borrowers against improper acceleration and represents lenders in foreclosure proceedings throughout Southwest Florida. Contact us to discuss your mortgage matter.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC