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What does a voluntary dismissal and original disposition updated mean. It also says dismissed before hearing?

Melbourne, FL |

Have the plantiff's (the bank) dropped the foreclosure suit against us??

Attorney Answers 1

  1. A voluntary dismissal is when a Plaintiff, (the party bring the lawsuit, in your case the bank or lender) ceases further action and dismisses (gives up on) the case. A dismissal can be with prejudice or without prejudice. If the dismissal is without prejudice the case can be refiled in the future. For the lender to re-file they would have to start over at the beginning and pay a new filing fee to the Court and serve you again. If the dismissal is with prejudice then the case cannot be re-filed. If the dismissal does not say whether it is with or without prejudice then the Court will treat the dismissal as being without prejudice.

    There are several reasons why a foreclosure case against you might be dismissed. Sometimes an error is made in the original law suit that can't be corrected. If a foreclosure action was brought by Sunbank but Sunbank realized that they had sold the note and mortgage to Moonbank and their lawsuit was in error such lawsuit would likely be voluntarily dismissed. We have this happen to one of the firm's clients. Another reason that cases get dismissed is that the bank elects to write off the loan rather than complete the litigation. In cases where the value of the property is very small (well under 100k) and the bank has an alternate source of recovery ( Mortgage Insurance or other source of recovery from the government or a collateral source ) banks sometimes elect to write off the loan because doing so is less costly the prosecuting the foreclosure. Our firm recently obtained a dismissal for a Brevard County client, where the lender elected to write off the loan. A copy of the dismissal obtained in our case (with our client's information removed) is posted on our firm's blog. You or your counsel should find out from the lender's attorney why the case was dismissed. If the bank intends to write off the loan the next step will be to hire counsel to quiet title and/or negotiate for a satisfaction of mortgage from the lender.

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