Successful New York Foreclosure Defense Involves Arguing The Lender Violated The Six Year Statute of Limitations
A successful New York foreclosure defense involves arguing the lender violated New York’s six-year statute of limitations. The six-year statute of limitations begins when the lender accelerates the mortgage not when the lender brings a foreclosure action.
Acceleration of the Mortgage means the lender is calling the mortgage due in full. This is usually because of the homeowner is in default. Consequently, the lender then must provide a notice to the homeowners in writing.
The lender is required to provide the homeowner with a 90-day notice they are accelerating the mortgage. The lender must send a letter outside of 90-days of initiating a foreclosure lawsuit. Failure of the lender to provide the homeowner with the 90-day notice gives the homeowner a legal defense to stop the foreclosure lawsuit.
A Successful New York Foreclosure Defense Also Involves Not Restarting The Six Year Statute Of Limitations
The 6-year statute of limitations restarts if the homeowner makes any type of payment on a mortgage. This includes any payments on any mortgage modification. A Chapter 13 bankruptcy filing that acknowledges the mortgage debt will also restart the statute of limitations.
The statute of limitations is the nuclear missile in any New York Foreclosure Defense case. Therefore, the homeowner should be very careful to avoid taking any actions that will restart the statute of limitation clock.
You should contact a qualified foreclosure defense attorney if you feel you have never received your Notice of Acceleration letter.