Recent Favorable Client Result

Jeffrey Jackson & Associates, PLLC achieved another favorable result in a four-year statute of limitations case in May 2019. In Texas, lenders must conduct a residential foreclosure within four years of accelerating the loan balance. The issue before the Texas 14th Court of Appeals in Swoboda v. Ocwen Loan Servicing, LLC, et al. was whether the lender abandoned acceleration of the loan balance during the four years that passed after the initial acceleration. The lender argued that it abandoned the initial acceleration by entering into a loan modification agreement with Mr. Swoboda, sending Mr. Swoboda a mortgage statement indicating less than the accelerated amount due, re-accelerating the loan a year after the initial acceleration, and merely negotiating with Mr. Swoboda for a short sale or loan modification.

The 14th Court of Appeals rejected all of the lender's arguments and remanded the case for a trial on the merits. The scenario in Mr. Swoboda’s case is not uncommon, particularly when it comes to Texas home equity loan foreclosures. Homeowners and practitioners should remain vigilant in protecting rights under the statute of limitations to foreclose. The Opinion in Swoboda v. Ocwen Loan Servicing, LLC, et al., --- S.W.3d. ---, 2019 WL 2219648 (Tex. App. -- Houston [14th Dist.] May 23, 2019, no pet. hist.) can be viewed by clicking here.