In short: Reversed. The borrowers paid $52,000 under a mediated settlement to bring their loan current; the bank then demanded about $20,000 more before closing a modification and foreclosed when they refused. The Third District held the bank breached the agreement, reversed the foreclosure judgment, and ordered the settlement enforced as written.
The Facts
The borrowers, Gene and Maria Lentz and Gladys Marcos, stopped paying their mortgage in 2010, and Community Bank of Florida filed foreclosure. At an October 2011 mediation the parties signed a handwritten settlement. The bank agreed to reinstate and modify the loan if the borrowers qualified: a new principal of $382,500 (which already rolled in roughly $45,000 of costs the bank claimed), 6 percent interest instead of 7.5 percent, a 40-year amortization and a five-year balloon. The borrowers had to pay $52,000 within 72 hours to bring the old loan current, held in escrow and refundable if they did not qualify.
The borrowers paid the $52,000. The 45-day closing deadline passed with no loan documents. About 90 days later the bank sent a commitment letter demanding another $19,983.01 at closing for past-due items on the old loan, amounts it knew about at mediation but never wrote into the agreement. The borrowers would not sign. The bank took the $52,000 out of escrow, applied it to the old loan and pushed the foreclosure forward.
After a two-day hearing, the trial court refused to enforce the settlement, reasoning that neither side had breached but that enforcing it after so much time would be unfair. It later entered final summary judgment of foreclosure for $527,601.55.
The Decision
The Third District reversed on March 9, 2016. The agreement was unambiguous: the parties set the specific amount, $52,000, needed to bring the old loan current, and the borrowers’ only other obligation was closing costs on the new loan. The bank’s demand for nearly $20,000 more had nothing to do with closing costs on the new loan, so the commitment letter was a material breach. Because the agreement was clear, the trial court should not have used outside (parol) evidence to change its terms.
The court also rejected the “too much time has passed” rationale. Any delay or prejudice came from the bank’s own breach, not from anything the borrowers did, and refusing enforcement would make the bank’s promises illusory. The case went back to the trial court to enforce the settlement as written.
The Law
A mediated settlement agreement is a contract, and Florida has a strong public policy favoring the enforcement of settlements. Court-ordered mediation is governed by section 44.102, Florida Statutes and Florida Rule of Civil Procedure 1.730, which requires that a mediated agreement be put in writing and signed by the parties and their counsel. Once signed, either side can ask the court to enforce it.
Ordinary contract rules apply. When the language is clear, the court enforces the words the parties chose and does not let either side add terms through testimony about what they meant. A party that breaches cannot use the delay its own breach caused as a reason to escape the deal.
Lessons
- At mediation, put every dollar figure in writing: what cures the default, what goes into the new loan, and who pays which costs.
- If the lender later demands money the agreement does not mention, do not just walk away. Object in writing and file a motion to enforce the settlement.
- A trial court cannot rewrite a clear settlement because it thinks enforcement has become unfair.
- Keep proof of every payment made under a mediation agreement, including escrow terms.
Source: Lentz v. Community Bank of Florida, Inc., No. 3D14-0726 — Fla. 3d DCA (March 9, 2016).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Paid $52K to Save the House, Then a Surprise $20K Bill | Lentz v. Community Bank, 3D14-0726
Go Deeper
- Loan Modification and Forbearance in a Florida Foreclosure: Your Federal Loss Mitigation Rights
- How to Stop a Foreclosure in Florida: The Options That Still Work in 2026
- The Florida Foreclosure Process, Step by Step
Frequently Asked Questions
Can a bank change the terms after a foreclosure mediation agreement?
Not unilaterally. A signed mediated settlement is a binding contract. In Lentz v. Community Bank of Florida, the bank demanded about $20,000 the agreement did not require, and the Third District held that was a material breach, reversed the foreclosure judgment and ordered the settlement enforced as written.
How do I enforce a mediated settlement agreement in a Florida foreclosure?
File a motion to enforce the settlement agreement in the foreclosure case, attaching the signed agreement and proof of your performance, such as payments. The court can hold an evidentiary hearing. If the language is clear, the court should enforce it as written rather than rely on outside testimony to change it.
Does a mediation agreement have to be signed to be enforceable in Florida?
Under Florida Rule of Civil Procedure 1.730, a mediated agreement reached in a court case must be reduced to writing and signed by the parties and their counsel, if any. An oral understanding at mediation, without a signed writing, is generally not enforceable as a mediated settlement.
What happens to money paid under a mediation deal if the bank breaches?
It depends on the agreement’s terms. In Lentz, the $52,000 was to be held in escrow and refunded if the borrowers did not qualify. The bank instead applied it to the old loan and foreclosed. The appellate court reversed and sent the case back to enforce the deal, which included the agreed treatment of that payment.
Talk to a Florida foreclosure defense lawyer
Weidner Law, P.A. has defended Florida homeowners in foreclosure and foreclosure appeals for more than 25 years. If you need a foreclosure defense lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
