## Facts

- The Lees executed a promissory note secured by a second mortgage held by Old Republic Insurance Company, payable in monthly installments of \$387.85.
- The mortgage contained an acceleration clause allowing Old Republic to declare the entire unpaid balance due upon payment default.
- The Lees missed the March and April payments.
- Old Republic gave notice of default and exercised its contractual option to accelerate, demanding immediate payment of the full unpaid balance.
- After acceleration, on May 16, the Lees tendered a certified check covering the two delinquent installments and the upcoming May installment.
- Old Republic returned the check and filed a foreclosure action based on the accelerated debt.
- The trial court granted the Lees’ motion to reinstate the mortgage and denied foreclosure, relying on equitable considerations including substantial equity in the property, the first mortgage being current, and an anticipated sale that would pay off the second mortgage.
- Old Republic appealed.

## Issues

1. Whether, after a mortgagee has exercised a contractual option to accelerate, the mortgagor can defeat foreclosure by tendering only the arrearages (and a current installment) rather than the full accelerated balance.
2. Whether a trial court may order reinstatement based on equitable considerations when the mortgagee has validly accelerated under the contract and no contractual or statutory reinstatement right is shown.

## Decision

- The appellate court reversed the order reinstating the mortgage.
- The court held that once the mortgagee validly exercises its option to accelerate, the mortgagor’s ability to cure by paying only past-due installments is terminated absent a contractual or statutory right to reinstate.
- The case was returned for proceedings consistent with allowing foreclosure on the accelerated debt.

## Legal Principles

- A mortgagor may prevent acceleration by tendering all arrears before the mortgagee exercises a contractual acceleration option.
- After acceleration, the obligation becomes immediately due in full; tender of only delinquent installments (even with an additional current payment) is not sufficient to require reinstatement.
- Equitable factors such as borrower equity, a current senior mortgage, or a planned sale do not, by themselves, override a mortgagee’s exercised contractual acceleration right in the absence of a recognized reinstatement right.

## Conclusion

The court enforced the contractual effect of acceleration, ruling that the borrowers could not compel reinstatement by paying only the missed installments after acceleration, and that foreclosure could proceed on the accelerated balance absent a separate contractual or statutory reinstatement right.


Old Republic Ins. Co. v. Lee, 507 So. 2d 754 (Fla. Dist. Ct. App. 5th Dist. 1987)