Bank Forecloses After Owner Pays One Day Late

The staggering rate of foreclosures on Florida’s homes and businesses is well known. What property owners may not realize, however, is that lenders may have legal cause to foreclose after just one missed payment. In some cases, depending on the terms of the mortgage and promissory note, even if the property owner makes the missed payment the very next day, the bank may insist on foreclosing.

That’s what happened to the owner of a Mobil station. According to the Tampa Bay Times, “Saji Mathew was one day late in paying the mortgage on his gas station.”  Although he deposited the money into his account the very next day to make his payment, since BB&T, the lending bank, often did not withdraw the money from his account until several days after the payment due date, BB&T returned his payment.  The bank also returned payments Mathew attempted to make over the next two months and instead initiated foreclosure proceedings in court.

Even the judge assigned to the case, Circuit Judge Amy Williams, was incredulous over the lawsuit.  “This is why we’re in a worldwide financial crisis because there’s no business sense anymore in the foreclosure industry, none,” she said during a recent hearing in which Mathew offered to pay BB&T $50,000, the full amount due since October.  Judge Williams ordered BB&T to either place the $50,000 in a trust account or into the court registry until the case is concluded.

The foreclosure defense attorneys at PERENICH The Law Firm, which has its main office in Clearwater and serves clients throughout the  Tampa Bay area at additional offices in St. Petersburg, Tampa, Trinity/New Port Richey, and Tarpon Springs, have over 20 years of experience in defending home and business foreclosures.