In FLA Mortgage Capital 1 LLC v. Unknown Heirs of Scott R Paul et al, the New York Appellate Division, Fourth Department affirmed the denial of the defendants’ motion to vacate a foreclosure judgment and cancel a referee’s deed following the foreclosure auction sale. The defendants argued the action was time-barred under the Foreclosure Abuse Prevention Act (“FAPA”) because the loan was accelerated via the commencement of a prior foreclosure action, FAPA CPLR §3217(e) applied retroactively so that the acceleration was not revoked, and the completed foreclosure was commenced outside the CPLR §213(4) six-year limitations period from the inception of the prior foreclosure.

The Appellate Court found that the defendants failed to timely move for leave to renew based upon a “change of law” (FAPA”) within the time required by CPLR §2221(e), and their reliance on CPLR §5015(a) was misplaced because that statute did not provide a basis to vacate the judgment based upon a purported “change of law”. The Appellate Court also concluded no equitable basis existed to vacate the foreclosure sale. This case was successfully handled by Stephen J Vargas Esq. and the team at Friedman Vartolo LLP.