How Long does it Take to complete an NY Mortgage Foreclosure?

January 11, 2019 at 9:32 am Leave a comment

In the Big Apple 2,190 Days. Outside of N.Y.C.  you have a mere 1,740. Actually, that’s the maximum amount of time Fannie Mae and Freddie Mac expect mortgage servicers to complete straightforward  foreclosure actions once a borrower becomes delinquent. If you are servicing a loan in California you have 480 days. What is wrong with this picture?

The reason why I decided to bring this up on this disgustingly cold Northeast morning-I can taste my scotch in front of the fire already- is not only because of the Fannie\Freddie announcement but because of this decision that came out yesterday which does a pretty good job of summarizing one of the key emerging issues in mortgage litigation in New York  and across the country: How to calculate the statute of limitations when deciding if a lender has run out of time to foreclose on property?

In New York for example you have a 6 year statute of limitations to bring a foreclosure action. This seems clear enough until you start figuring out the impact that failed mortgage modifications, improperly filed notices and previously dismissed actions have on the foreclosure clock. There is even a dispute of whether a lender can bring separate actions for each late payment.

If you provide mortgages I would delve into this proverbial legal thicket not because you need to know the answers to this arcana but because you need to know what questions to ask that attorney you are working with. . Let’s hope these issues move quickly in the appellate process so that our Court of Appeals can give some clear-cut statewide guidance on how to count to six.

State-Of-The State on Tuesday

Governor Cuomo announced yesterday that he would deliver a combined State-of –the- State address Budget presentation on Tuesday. The importance of the governor’s budget proposal has only grown over the last decade as he has put more and more  of his key legislative proposals in the so-called Article VII bills  which explain how the governor is proposing to spend budget allocations.  This tactic is one of the main reasons why New York has one of the country’s most powerful executive branches.

Best Weekend of the Year  

If you are a sports fan like your faithful blogger,  then you know why this is one of the best weekends of the year. Every remaining NFL team is in a single elimination game which makes for some great drama; just ask a Bears fan. But wait,  there’s more. The  Islanders play the Rangers tomorrow. The rivalry isn’t quite as good as it used to be but having watched a fair number of these matchups at the Nassau Coliseum I can tell you there are moments when you understand how the Yugoslavian civil war got started. Besides, the Islanders beat the Rangers last night despite only getting one shot on goal in the third period.   As luck would have it, the one shot was a goal.  I don’t think I’ve ever seen that.

Entry filed under: Legal Watch, Mortgage Lending, New York State. Tags: , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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