Foreclosure case dismissed

[myhearts07]

Just talked with my brother and they have a loan with countrywide. They had to go to court today because they had been served with foreclosure papers. Anyhoo, they get to court and neither the lender or the builder sent a representative today and the judge dismissed the case and any other court dates that were listed because no one showed up. What does this mean for them? What is the next step?

Hearts

[justbroke]

The lender just submits another foreclosure action... unless the Judge dismissed with prejudice, enjoining the lender from initiating another foreclosure action.

In that case, the latter with the injunction, they are free. The problem is, that the lender (CW) will probably issue a 1099-C forgiving the debt, and you'll have to pay taxes on it.

[myhearts07]

Thanks. How would they know if he dismissed with prejudice?

Hearts

[justbroke]

Thanks. How would they know if he dismissed with prejudice?

The Order Dismissing the case would say something, at the end, like DISMISSED WITH PREJUDICE, or something similar.

I don't think it would stop them from starting another foreclosure action (as Florida has caselaw on the matter). I just think that they may give up and forgive the debt and issue the 1099-C. That would be nice.

I think I misspoke when I posted earlier that they would be "free". Free from that foreclosure action, but may not be enjoined from filing new actions based on a later default.