Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Landlord Tenant Law Litigation

Foreclosure Statute of Limitations

In a set of foreclosure cases decided in late February, the Court of Appeals resolved some of the questions that have plagued New York’s court system in the aftermath of last decade’s mortgage crisis.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In a set of foreclosure cases decided in late February, the Court of Appeals resolved some of the questions that have plagued New York’s court system in the aftermath of last decade’s mortgage crisis. When borrowers defaulted on their mortgage loans, immediate foreclosure was not always the best option for mortgagee banks, especially in what was, for a number of years, a weak housing market. Suppose, however, the bank delayed in bringing a foreclosure action. When would the statute of limitations bar a foreclosure action or an action on the underlying mortgage debt, leaving the defaulting mortgagor with title free and clear of the mortgage? In the last few years, hardly a week has gone by without a case involving the application of the statute of limitations to defaulted mortgages. In Freedom Mortgage Corp. v. Engel and its companion cases, the Court of Appeals provided a road map for resolution of these cases.

Read These Next