Mortgage Lien Not Extinguished By Quiet Title Action
08/11/15 18:08
Recently in Countrywide Home Loans, Inc., v. Wayne R. Burnette, Case No. 1D14-728, The First District Court of Appeals considered whether a mortgage lien had been extinguished five years after the acceleration of the debt.
The Court reasoned that even if the statute of limitations had run on an action to enforce a promissory note and foreclose on a mortgage, the lien against the property remained valid until five years after the maturity date of the debt secured by the mortgage. The face of the promissory note reflected a maturity date of November 1, 2035. The mortgage lien therefore terminated on November 1, 2040.
The Court reasoned that even if the statute of limitations had run on an action to enforce a promissory note and foreclose on a mortgage, the lien against the property remained valid until five years after the maturity date of the debt secured by the mortgage. The face of the promissory note reflected a maturity date of November 1, 2035. The mortgage lien therefore terminated on November 1, 2040.