I got served with a foreclosure lawsuit. On the lawsuit they have the notice of intent to accelerate (exhibit). The notice was sent to the actual property (I did not get it- Tenants where living in the property) and not where I live now. For the last couple of years they send all correspondence where I currently live now. When I got served they did so in my current address and on the cover sheet it has my current address. Now that intent to accelerate was dated 8-13-15. They then send me a letter to de-accelerate dated 8-14-15. The de-accelerate letter advised that the prior foreclosure was dismissed (2011) and that the acceleration of indebtedness is hereby referred to in the complaint is rescinded. Then it goes on to say although the mortgage debt is no longer accelerated, the account is still delinquent.
Yes, many cases are dismissed based on the failure of the notice to accelerate being accurate. However, it requires reviewing it to see how it is drafted, who authored it and whether it is legally valid. Consult with a knowledgeable foreclosure attorney as soon as possible so you can beat this and fight the foreclosure.
From what you have posted it appears that the letter is good news. The bank has dismissed the former foreclosure action and is not currently seeking to accelerate the loan although it is delinquent. You may want to speak with an attorney to see if the loan can be modified to allow you to keep the home or arrange a short sale if you are not seeking to keep the property to avoid another foreclosure and acceleration of the loan.
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Letter served properly or not, you still owe the mortgage, except for any payments that might be older than 5 years. Effectively, as the law is currently by a case decision, there never was an actual acceleration, so need to de-accelerate. Although there is an attempt underway for Supreme Court review. I doubt it will change. Take your documents to an attorney for a full and proper review.
The law is complicated and although the facts expressed may seem to be all that is relevant, there may be many other important facts to consider. Also, the law is constantly undergoing change, so what may be correct today, may not be accurate tomorrow. Only a full consultation with an attorney experienced or knowledgeable in the specific legal subject matter is likely to result in the optimal course of action.
The appellate courts have already held that there is no need to decelerate before foreclosing again. They have also held that there is no need to serve a new acceleration notice as the old one is still in effect. It's likely that this deceleration notice had no legal effect on the debt or the bank's right right to foreclose again as it wasn't needed to begin with. They will likely send another acceleration notice anyway as the default cannot be based on a date more than 5 years from when they file.
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