The Servicer filed a motion for summary judgment, arguing that the Borrowers' claims were time-barred under the WV Consumer Credit Act's one-year statute of limitations. The district court granted summary judgment, ruling that the one-year limitations period began to run as of the date of loan acceleration. The Fourth Circuit affirmed.
Rejecting the Borrowers' assertions that the acceleration date was not a "last scheduled payment date" for purposes of the statute of limitations, the Court pointed out that the deed of trust expressly provided that, upon acceleration, "all sums secured by this Security Instrument . . . shall at once become due and payable." Thus, according to the parties' "agreement, the event of acceleration materially altered the parties' original schedule of payments, allowing the lender to demand full payment of the loan amount upon the borrower's default."
Ralph T. Wutscher
McGinnis Tessitore Wutscher LLP
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