There are various reasons why a bank might volunteer to dismiss its foreclosure case; reasons can range from the fact you've entered a settlement with the bank or the bank has granted you a loan modification to they cannot correct the errors in their paperwork. But save for the amicable circumstances of voluntary dismissals, do not confuse the dismissal of a foreclosure with complete forgiveness from the bank. In fact a voluntary dismissal is often just the eye of the storm.
Banks, by and large, usually plan to re-file cases that they voluntarily dismiss. In most cases if you receive a dismissal it's due to the fact the bank has made an error in their documentation that creates a legal issue, such as lack of standing to bring the foreclosure. Once the discrepancy is fixed on the banks end, the case will likely be re-filed and the foreclosure will start over from the beginning. One might think this is unfair considering the high cost to defend the initial foreclosure, but the homeowner is not left without a remedy.
The Florida Rules of Civil Procedure provide that a prevailing party can ask the court to award costs and fees from the losing party. When one party dismisses a case, the opposing party is rendered the prevailing party and has a good case to collect fees under this rule. While the rule seems clear, some judges have been reluctant to impose the amount of fees necessary to cover the attorney's fees incurred by the homeowner.
For homeowners in Jacksonville and the surrounding areas, remember that it may be a good idea to contact a Jacksonville Foreclosure Defense attorney if the prospect of Florida Foreclosure Lawsuit is on the horizon. Fast action is one of the most important steps to take when defending a foreclosure case.