US Bank loses foreclosure bid after court rules 2007 debt acceleration stuck
GMAC voluntarily discontinued that action in December 2009. Nine years later, in November 2018, Ditech Financial filed a fresh foreclosure action on the same mortgage. U.S. Bank National Association later stepped in as successor in interest to Ditech.
The borrowers hit back with a simple argument: the clock started in 2007, and six years had long passed by 2018.
They initially lost. In May 2022, the trial court denied their motion, reasoning that the voluntary discontinuance had revoked the acceleration and restarted the limitations period.
Then New York enacted the Foreclosure Abuse Prevention Act.
Foreclosure Abuse Prevention Act (FAPA), signed into law in late 2022, changed how lenders could reset the statute of limitations on accelerated mortgage debt. Armed with the new statute, the borrowers moved to renew their earlier motion. The trial court reversed course – vacating its 2022 ruling, granting summary judgment, and dismissing the complaint.
