Petroff Amshen LLP's foreclosure defense attorneys secured a major legal victory after a New York court dismissed a time-barred foreclosure case. The ruling confirms that the Foreclosure Abuse Prevention Act ("FAPA") applies retroactively and blocks financial entities from manipulating timelines. This decision protects homeowners and strengthens legal defenses against long-standing foreclosure threats.
NEW YORK CITY, NEW YORK / ACCESS Newswire / April 15, 2025 / A Brooklyn homeowner has won a major legal battle after a New York court dismissed a foreclosure case brought by a financial entity. The court ruled that the foreclosure was filed late-and that the bank couldn't legally restart the process after the deadline had already passed. The case was handled by Petroff Amshen LLP, a New York law firm that fights for homeowners facing unfair or prolonged foreclosure threats with legal advocacy for its clients.
The foreclosure in question was tied to a mortgage that had been the subject of a previous foreclosure case years ago. That earlier case had been dismissed, but the financial entity later tried to bring it back to court by sending a letter in 2018-claiming the mortgage was no longer accelerated. That move was meant to restart the clock and give them more time to file a new foreclosure.
Thanks to the Foreclosure Abuse Prevention Act ("FAPA")-designed to stop financial institutions from dragging out foreclosure cases for years-banks can no longer restart the timeline just by sending a letter. The law protects homeowners from being stuck in legal limbo and applies to cases that were already in progress before the law was passed.
Importantly, the court confirmed that FAPA can be applied retroactively, even to foreclosure actions that started before the law existed. The court rejected arguments that this violates constitutional rights like due process or contract protections, stating that the law was created to fix a confusing and unsettled area of foreclosure litigation. Because the rules around deacceleration weren't clear in 2018, the court determined that applying FAPA retroactively does not unfairly harm financial institutions, and instead accurately protects homeowners' rights.
"This case represents more than just a legal victory-it's a critical moment for homeowners who have been left in limbo by the banking industry's inconsistent and self-serving tactics," said Steven Amshen, founding partner of Petroff Amshen LLP. "The court sent a clear message: you cannot manipulate time and law to trap people in endless foreclosure cycles. FAPA exists to level the playing field, and we're here to enforce it."
The judge agreed that the six-year deadline to start a foreclosure had already passed, and that the attempt to reset the clock wasn't valid under the law. As a result, the court dismissed the foreclosure case entirely and denied all of the financial entity's requests, including its efforts to move forward with the process.
This ruling is part of a growing number of decisions that show how FAPA is helping New Yorkers stand up to unfair foreclosure attempts. It sends a strong message: homeowners deserve clear answers, legal protection, and finality-not years of stress caused by repeated filings.
Key highlights from the court's decision:
The six-year deadline to bring a foreclosure action had expired.
The 2018 letter attempting to undo acceleration was not valid under the law.
FAPA blocks financial entities from restarting the foreclosure process.
FAPA applies retrospectively, even for situations that began before the statute was passed.
The court emphasized that the law around deacceleration was unclear in 2018, justifying retroactive enforcement.
The ruling protects homeowners from indefinite foreclosure threats and legal uncertainty.
Petroff Amshen LLP, a New York based law firm, has been advocating for New Yorkers' to keep their home since the 2008 recession, helping people fight back against foreclosures, mortgage abuse, and credit damage. Their foreclosure defense attorneys work directly with homeowners to challenge illegal practices and defend their rights in and out of court.
"As long as financial entities continue to use delay tactics and stretch the law to their advantage, we will be in court fighting back," added Mr. Amshen. "Our clients deserve finality, dignity, and protection-and we won't stop until they get it."
Contact Information
Gabriel Botero
Media Relations
media@petroffamshen.com
(718) 336-4200
SOURCE: Petroff Amshen LLP
View the original press release on ACCESS Newswire
