The Second District Court of Appeal overturned a lower court decision that had initially protected Michael and Dianna Fernandez from foreclosure over their 2007 loan. Servicer Bank of America had erroneously reversed four payments in 2015 and eventually stopped accepting normal monthly payments in mid-2017 because the disputed arrears remained unpaid. The appellate court found that each subsequent missed installment constituted an independent default, meaning The Bank of New York Mellon can advance the foreclosure. However, the mandate requires the lender to remove the four contested payments, interest, and related fees from the final judgment.
Key points
Homeowners must continue submitting regular mortgage payments even while contesting unres…: Homeowners must continue submitting regular mortgage payments even while contesting unresolved accounting mistakes by their loan servicer.
Each successive missed monthly mortgage installment creates an independent legal default…: Each successive missed monthly mortgage installment creates an independent legal default that can justify foreclosure proceedings.
A lender's accounting blunders do not constitute sufficient evidence of wrongdoing to blo…: A lender's accounting blunders do not constitute sufficient evidence of wrongdoing to block an ultimate foreclosure action.
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A mortgage dispute can become complicated when a lender's own accounting records leave borrowers questioning how much they owe. A Florida couple faced this situation after their bank reversed four mortgage payments made in 2015 without explaining why. Although they continued making monthly payments for nearly two more years, the lender eventually refused to accept further payments, and the couple stopped paying. The dispute eventually reached an appeals court after a trial judge ruled that the bank had failed to prove a mortgage default.
In an opinion dated November 4, 2026, Florida's Second District Court of Appeal reversed that decision in The Bank of New York Mellon v. Fernandez, case number 2D2025-1819. The
ruling, available on Justia, revived the bank's foreclosure case against Michael and Dianna Fernandez. However, the court also directed the lower court to exclude the four disputed payments and certain related interest and fees when calculating the outstanding debt.
Four mortgage payments were reversed
Michael and Dianna Fernandez signed a $160,000 mortgage note in 2007, secured by their home. In 2012, they filed for Chapter 13 bankruptcy…
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