Lenders in New York are battling backwards to foreclose on loans that are indisputably due and owing. On Dec. 30, 2022, Governor Kathy Hochul signed into law the controversial Foreclosure Abuse Prevention Act (FAPA) in direct response to the New York State Court of Appeals’ decision in Freedom Mtge. Corp. v. Engel, 37 N.Y.3d 1 (2021), which case confirmed and established circumstances under which a lender could deaccelerate a loan and re-restart the six-year statute of limitations to foreclose it.

Under FAPA, however, among several other rockfalls, a lender can no longer unilaterally deaccelerate a debt, resulting in countless cases where a borrower, who has not made a mortgage payment or paid property taxes in over a decade, will no longer have to repay his or her loan.

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