October 9, 2024
ShareKelley Kronenberg Halts Improper Foreclosure, Preserves Lender Client’s Property
Kelley Kronenberg Attorney Bryan Jones of the firm’s Real Estate Division successfully intervened in a complex foreclosure case in the Duval County, Florida, County Court. Judge Rhonda Peoples-Waters presided over the matter, which involved intricate legal arguments concerning property rights and the validity of prior judgments.
The case originated from a circuit court foreclosure action where our client, a major financial institution, obtained a final judgment of foreclosure, extinguishing a junior mortgage held by a land trust. Subsequently, the land trust assigned its already-extinguished mortgage to another lender, which then filed a separate foreclosure action in county court. This action threatened to sell the property that our client had rightfully acquired through the previous foreclosure sale.
Upon discovering this improper foreclosure attempt just days before the scheduled sale, Bryan swiftly filed an emergency motion to intervene, cancel the sale, vacate the judgment, and dismiss the action. Bryan argued that the junior mortgage had been extinguished in the prior foreclosure action and that the opposing party’s attempts to relitigate the issue were barred by res judicata and collateral estoppel. He also successfully contended that our client should be allowed to intervene post-judgment due to its immediate interest in the property and lack of prior notice of the county court action.
The Court ultimately ruled in our client’s favor on all counts, granting intervention, canceling the foreclosure sale, vacating the opposing party’s final judgment, and dismissing their case with prejudice. This outcome protected our client’s rightful ownership of the property and prevented an improper foreclosure sale.
For more information about our Mortgage Foreclosure and Default Services practice, click here.
Stay abreast of the latest developments with our newsletter, “In the Know: Mortgage Default and Default Services Edition.” Click here for our latest issues.