When a lender files a foreclosure action against your home, it can feel like the walls are closing in. The legal process is long, complicated, and deeply stressful. But what many homeowners don't know is that lenders can make mistakes, and when they do, the law is on your side.
We recently secured a significant victory for two of our clients, that resulted in a complete dismissal of a foreclosure action against their home in Queens, and the full cancellation of their $637,500 mortgage. Here's how it happened, and what it means for homeowners facing similar situations.
The Background: A Foreclosure a Decade in the Making
The story begins in January 2007, when our clients executed a mortgage on their property. By 2009, the lender, then J.P. Morgan Chase Bank, N.A., filed a foreclosure action against them.
That first lawsuit, however, was voluntarily discontinued by the bank in November 2014. Then, in April 2017, a new successor lender filed a brand new foreclosure action, nearly eight years after the original loan went into default.
This is where the statute of limitations becomes critically important.
The Key Legal Issue: The Clock Had Already Run Out
Under New York law (CPLR § 213(4)), a lender has six years from the date a mortgage debt is accelerated to commence a foreclosure action. When Chase Bank filed its lawsuit in October 2009 and demanded the full balance of the loan, the clock started ticking.
Six years from October 2009 brings us to October 2015.
The new foreclosure action wasn't filed until April 2017; more than a year and a half too late.
The bank's argument was that when it voluntarily discontinued the first lawsuit in 2014, it effectively "reset" the clock, giving itself a fresh six years to sue. Under older case law, that argument had some merit. But the law changed dramatically in 2022.
The Game-Changer: New York's Foreclosure Abuse Prevention Act (FAPA)
In December 2022, Governor Hochul signed the Foreclosure Abuse Prevention Act (FAPA) into law (L 2022, ch 821). This landmark legislation was a direct response to years of abusive practices by mortgage lenders and noteholders who had been gaming the statute of limitations by filing lawsuits, voluntarily dropping them to reset the clock, and then refiling years later.
FAPA put a stop to that. Two of its most powerful provisions:
- Section 4 (codified at CPLR § 203(h)): Once a foreclosure cause of action has accrued, no party may unilaterally waive, postpone, cancel, toll, revive, or reset the limitations period — unless expressly permitted by statute.
- Section 8 (codified at CPLR § 3211(e)): The voluntary discontinuance of a foreclosure action shall not, in any way, waive, extend, revive, or reset the limitations period.
Critically, FAPA applies retroactively, meaning it applies to cases already in progress where a final judgment of foreclosure has not yet been enforced. The Court of Appeals confirmed this in Van Dyke v. U.S. Bank Natl Assn. (2025), holding that retroactive application of FAPA is rational and consistent with the legislature's intent to protect as many borrowers as possible.
How We Won: Renewing the Motion Under CPLR § 2221
Our clients had previously lost a motion to dismiss back in 2018, before FAPA existed. But a change in the law is a valid basis to renew a prior motion under CPLR § 2221(e)(2).
We moved to renew, arguing that FAPA constituted exactly that kind of change — one that would alter the earlier ruling. The court agreed.
Applying FAPA, the Queens County Supreme Court held:
- The mortgage debt was accelerated on October 26, 2009, when Chase Bank commenced the prior action.
- The six-year statute of limitations therefore expired in October 2015.
- The voluntary discontinuance of the first lawsuit in 2014 did not reset the clock under FAPA.
- The new foreclosure action filed in April 2017 was time-barred.
- The plaintiff failed to raise any triable issue of fact in opposition.
The result was a complete win for our clients.
What the Court Ordered
The April 6, 2026, Short Form Order directed:
- The foreclosure action dismissed in its entirety
- The 2018 order granting summary judgment to the plaintiff vacated
- The 2022 judgment of foreclosure and sale vacated
- The $637,500 mortgage canceled and discharged from the public record
- The Notice of Pendency canceled
Our clients' home is now free and clear of the mortgage and any foreclosure cloud that had hung over it for nearly two decades.
What This Means for Homeowners
This case is a powerful reminder that it is never too late to fight a foreclosure, especially in the post-FAPA landscape. Many lenders filed foreclosure actions years ago that may now be time-barred under FAPA's retroactive application. If you or someone you know is:
- Currently facing a foreclosure action that has been pending for several years
- Dealing with a lender that previously discontinued a lawsuit and refiled
- Under a judgment of foreclosure that has not yet been enforced
you may have legal options that did not exist just a few years ago. FAPA has fundamentally shifted the playing field in favor of homeowners, and courts across New York are applying it.
Contact Us
At James J. Quail & Associates, P.C., we stay current on the latest developments in New York foreclosure law because that knowledge can mean the difference between losing a home and keeping it.
If you are facing foreclosure or have questions about your mortgage rights, contact us today for a consultation.
This blog post is for informational purposes only and does not constitute legal advice. Prior results do not guarantee a similar outcome. Every case is unique and must be evaluated on its own facts. This is attorney advertising.