The U.S. Supreme Court's recent ruling in Shelby County v. Holder struck down a core provision of the Voting Rights Act, which protected against ethnically neutral changes to voting laws that nevertheless adversely impacted minorities in certain states with a history of voting discrimination. Unfortunately, while New York's history with regard to voting laws is relatively unblemished, the Appellate Division, Second Department's decision in HSBC Bank USA v. Taher, 104 A.D.3d 815 (March 20, 2013) reaffirms a policy in foreclosure actions, which, although ethnically neutral on its face, may nevertheless exacerbate ethnic and economic disparity among New Yorkers' equally important home ownership rights.

In Taher, the Second Department reversed HSBC Bank USA v. Taher, 34 Misc.3d 1201[A] (Sup Ct, Kings County 2011) (Schack, J.) and reaffirmed its position that homeowners in foreclosure actions may not challenge plaintiffs' "standing," unless that legal argument was timely raised in a formal answer or pre-answer motion. Thus, if foreclosed upon homeowners failed in their initial pleadings to timely challenge the standing of those bringing foreclosure actions (such as servicing agents), for whatever reason ranging from ignorance of the law to lack of resources to hire an attorney, the Second Department's ruling means they can lose their homes to plaintiffs that had no right to start the foreclose action.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]