William Meyer featured in the USFN June 2021 e-Update

Kansas Court of Appeals Rules for Lender in Statute of Limitations Case

In a recent ruling, the Kansas Court of Appeals addressed a residential mortgage foreclosure lawsuit in which the Kansas Trial Court ruled the case was barred by the statute of limitations. The Court of Appeals ruled the trial court erroneously concluded the lender’s claims were time barred under K.S.A. 60-511(1)’s five-year limitation’s period based upon the date the lender’s 2011 Notice of Intent to Accelerate was sent to the borrower. The case is a published opinion and styled Wilmington Savings Fund Society, FSB v. Holverson, et al., Kansas Court of Appeals No. 122,179. This case is noteworthy as it defines when a debt acceleration occurs, relying heavily on Florida law as persuasive authority on acceleration.

The facts of this case were atypical. The residential mortgage loan was sold and transferred multiple times. Prior to the filing of the foreclosure case, the borrower filed a Chapter 7 bankruptcy which discharged the borrower’s personal obligation to repay the mortgage debt. Additionally, the borrower filed a Chapter 13 bankruptcy after the foreclosure case was filed but the bankruptcy case was later dismissed.


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