New York Judge finds foreclosure time-barred and cancels Mortgage: Costa v. Deutsche Bank

Read Costa v. Deutsche Bank here: Costa v. Deutsche Bank 2017 03 29

Unlike Florida where there is no statute of limitations and every missed mortgage payment resets the clock, New York enforces the statute of limitations for debt collection including mortgages.

A federal judge has granted two New Rochelle, New York homeowners’ request to have their mortgage canceled, ending their nearly 10-year battle to keep their house after defaulting on a $544,000 mortgage loan they took out in 2006.

The decision on Thursday by U.S. District Judge Katherine Polk Failla in Manhattan was a defeat for Deutsche Bank National Trust Co, trustee for a trust that owned the mortgage loan, which had argued that the couple was getting a free house on a technicality. Under New York state law, Vito and Marion Costa have a right to the property mortgage-free because a six-year statute of limitations on foreclosing on it had passed, Failla said.

More information to follow in the next week when we obtain the case specifics.

This is excellent news for New York homeowners and will hopefully be applied in other states.

 

 

7 Responses

  1. Jeff–a dismissal should be treated differently from a judgment. You might research ‘res judicata’….though we dont know what exactly the judgment says.

  2. My wife and I were in Foreclosure in Florida for 7 years. We finally got a “Final judgment for defendant”. The bank has filed foreclosure again this year. Per the Bartram decision, the 5 year Statute of Limitations doesn’t expire in the event of a “dismissal”. We have a Final Judgment NOT a Dismissal. Wouldn’t our case be the same as the one in this article?

  3. The only party that would be getting a free house would be DB. If DB had the proper paperwork to enforce a foreclosure, this wouldn’t have dragged on for 10 years. Bravo, Judge!

  4. A new Bill (S 0425) http://webserver.rilin.state.ri.us/billtext17/senatetext17/s0425.htm/ was introduced in the Rhode Island General Assembly. In essence, it is to make the following after pasaage:

    1 This act would validate certain conveyancing defects in various instruments executed by

    2. or affecting grantors, grantees, business entities, powers of attorney, probate fiduciaries, mortgage

    3. discharges and foreclosures or certain clerical defects.

    JUST FOUND OUT FROM THE INTERNET.

  5. May I know what is the statute of limitation in Rhode Island for mortgages?

  6. That’s good for their behinds. This bank are a bunch of crooks as well as the lawyers they hire. They stole my mother’s house as well and it’s disgusting to see that after all these years they are still doing the same thing. STEALING PEOPLE HOMES!!!!

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