There’s always a lot of talk about a borrower’s rights during a foreclosure, but what about the creditors’ rights? In New York, the mortgage lien holder for a property, along with any junior lienholders or other creditors with claim to the property, have certain legal rights during the foreclosure process. In this post, we’ll discuss [...]
In New York, two separate notices are typically required prior to commencement of a foreclosure on a residential one to four family property. These are commonly known as the 30-Day Notice of Default (“Notice of Default”) required by the standard FNMA mortgage and the statutory 90-Day Notice. This writing will discuss the sufficiency of proof [...]
New York’s CPLR §213 provides for a six (6) year Statute of Limitations for the enforcement of contracts. Since a mortgage is considered to be a “contract”, foreclosure actions must be commenced within six (6) years. Note that each individual payment due constitutes a separate “cause of action”, and, consequently, each payment becomes “time barred” [...]
Due to the housing crisis of the past 5 years, efforts have been made to give homeowners every conceivable chance to avoid the foreclosures of their properties, so that they are not forced out of their homes. While well-intentioned, some of these provisions have resulted in unintended consequences. One such impact has been the rise of “zombie foreclosures.”
Effective July 1, 1994, New York began to treat mobile homes and manufactured housing units as “motor vehicles”…
Commencing a post-foreclosure eviction action requires that the deed be exhibited to the occupant.
The question of what is a sufficient method of “exhibiting” the deed has been one of great debate.
New York now requires a notice prior to a foreclosure and mandatory settlement conferences. Reverse mortgages were previously not subject to these statutes.
The number of New York vacant and abandoned houses in foreclosure have skyrocketed in the past few years as a result of the incredibly long foreclosure process in New York, causing a blight on residential neighborhoods and prompting outrage from local municipalities. (See my article - Zombie Foreclosures Are They Coming For You?)
By now, most servicers are fully familiar with New York’s Statute of Limitations and the nuance that it only begins to run on each installment when it becomes due unless accelerated. (See my article about the Statute of Limitations).
My previous article regarding New York's Statute of Limitations (CPLR 213) described how New York provides an affirmative defense to actions based upon contractual obligations that accrued more than six (6) years ago.
