Key Points | FLORIDA APPELLATE COURT REVERSES JUDGMENT FOR NEW PROPERTY OWNER FINDING LENDER’S FORECLOSURE NOT BARRED BY LACHES

1. Florida’s Second DCA found the trial court abused its discretion when it refused to foreclose US Bank’s mortgage based on the new owners’ (non-mortgagors) affirmative defense of laches. S. Bank Home Mortg. v. Boivin, 50 Fla. L. Weekly D401 (Fla. 2d DCA February 14, 2025). In February 2020 the Vanderburgs purchased property at the City of Largo’s code enforcement foreclosure sale which property was encumbered by the Boivins’ previously recorded mortgage in favor of US Bank. US Bank’s mortgage contained an optional acceleration provision and a non-waiver clause.
2. After two unsuccessful attempts to foreclose the Boivin mortgage, US Bank filed its third foreclosure action shortly after the Vanderburgs took title to the property. The Vanderburgs alleged that the foreclosure was barred by laches because US Bank “slept on its right to foreclose” while the the Vanderburgs “expended a large amount of money” on “repairs, insurance, and taxes.” The trial court agreed and entered a judgment in favor of the Vanderburgs. US Bank appealed.
3. The Second DCA determined that the Vanderburgs failed to satisfy the required elements of laches because they knew about the Boivins’ mortgage and proffered no explanation for why they thought US Bank would not or could not foreclose its mortgage lien. The face of the mortgage reflected a maturity date of July 1, 2036. Although the Court was sympathetic to the Vanderburgs’ lost investment, the Court surmised the Vanderburg made a calculated risk and could not rely on the doctrine of laches to shield them from the resulting loss.

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