• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • About
  • Services
  • Team
  • Blog
  • Careers
  • Contact

New York Court of Appeals issues impactful Engel decision

February 19, 2021 by Adam Friedman

A decision has been rendered by the Court of Appeals in the matter of Freedom Mortgage Corporation v Engel.  This decision has implications for high risk statute of limitation assets. Its impact will be far-reaching, and an unequivocal win for the foreclosure plaintiff’s bar and servicers and lenders who regularly deal in New York defaults.  The decision can essentially be summarized into three distinct holdings: (1) A voluntary discontinuance, in and of itself, acts as a de-acceleration of the debt absent an affirmative statement by the lender to the contrary, (2) The failure to reference the correct loan documents in a summons and complaint will result in an invalid acceleration, which is incapable of beginning the statute of limitations clock, (3) The use of the language “will accelerate” in a default notice does not itself accelerate the debt as advocated and previously found by the first department in Deutsche Bank Natl. Trust Co. v Royal Blue Holdings, 148 AD3d 529(1st Dept 2017).

We can anticipate both plaintiff’s bar and defendant’s bar carefully reviewing this 33-page decision to support and distinguish their respective cases.  For any questions regarding this case, or its impact, please contact Richard O’Brien, Esq. (robrien@friedmanvartolo.com) or Deborah Gallo, Director of Operations (dgallo@friedmanvartolo.com).

Filed Under: Uncategorized

Primary Sidebar

PRACTICE AREAS

  • Default Services
  • Residential
  • Real Estate Litigation
  • Commercial Transactions
  • Foreclosures
  • Bankruptcy
  • Evictions

POPULAR ARTICLES

New York Court of Appeals issues impactful Engel decision

Recent New York Statute of Limitations decision

COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 and Administrative Orders

Recent decision clarifies RPAPL 1302-a

NY Bill S4190 requires including name & telephone number of the mortgage servicer on FC documents

NY Administrative order 232/20 released

New York Foreclosure sales slowly move forward

NYC DCA issues revisions to Debt Collection rules effective 10/1/2020

The New York Split on whether Default Letters are deemed Acceleration of the Loan Continues…

New York State Office of Court Administration issues Guidance on Evictions

Authors Name

Adam Friedman (5)
  • New York Court of Appeals issues impactful Engel decision
  • Recent New York Statute of Limitations decision
  • COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 and Administrative Orders
  • Recent decision clarifies RPAPL 1302-a
  • NY Bill S4190 requires including name & telephone number of the mortgage servicer on FC documents
Michael Derosa (3)
  • A Good Faith Notice Before Moving For Default
  • No More “Re-Notice” Requirement Westchester and Putnam County
  • How Quickly Can a Mortgagee Complete an Uncontested Foreclosure Action in NY?
Ralph Vartolo (1)
  • Criticism of Cuomo’s Certificate of Merit Law & The Real Effects It Will Have

Footer

MCM Categories

  • Slider Background
  • Team Detail Page Photo
  • Team Main Page Photo

© 2021 Friedman Vartolo LLP. All Rights Reserved

This website may constitute attorney advertising under the New York Code of Professional Responsibility. Prior results do not guarantee a similar outcome.

DESIGNED BY BOFILL TECH