Statute Of Limitations Sinks Another Foreclosing Lender As Queens Judge Issues Order Quieting Title, Expunging Mortgage On Borrower's Home From Public Record; Bankster's Attempt To 'De-Accelerate' Loan Maturity Falls On Deaf Ears (Appeal Likely?)

In New York City, examiner.com reports:

• On the afternoon of January 11, 2016, New York State Supreme Court Judge Salvatore Modica issued a decision in a Quiet Title case that will send shivers down the spines of mortgage bankers and servicers in the business of foreclosing on loans in default in New York.
  
  In this case the homeowner’s attorney was able to obtain a dismissal of the prior foreclosure case thereby ending the foreclosure action. The homeowner’s attorney Brian McCaffrey, Esq., then set out to invoke the statute of limitations and sued Citimortgage, Inc., asking the Court to declare the mortgage invalid and have it removed from the public record.
  
  In an interview on Tuesday January 12, 2016, Mr. McCaffrey stated “we tried for a very long time to obtain a loan modification for our client but Citimortgage, Inc., through their attorney’s Rosicki, Rosicki & Associates, wouldn’t agree to modify the loan.” and “instead Citimortgage tried to continue their foreclosure effort, which we were able to get dismissed.”
  
  Three days before the statute of limitations expired, Citimortgage sent a letter to the homeowner which attempted to decelerate the mortgage, the letter stated “the maturity of the Loan was previously accelerated by filing a lawsuit to foreclose the mortgage… (and that) the maturity of the Loan is hereby de-accelerated, immediate payment of all sums owed is hereby withdrawn, and the loan is, re-instituted as an installment loan.”
  
  McCaffrey sued Citimortgage on behalf of the homeowner and argued that this “de-acceleration” was not allowed and that the letter had no effect. He asked Judge Modica for a ruling that the mortgage was invalid and asked the Judge to order the County Clerk to cancel the mortgage.
  
  In his decision, Judge Modica wrote “Ordered that the subject mortgage held by defendants, Citimortgage, Inc., is declared invalid; and – Ordered that the County Clerk of Queens County is directed to cancel the mortgage held by defendant, Citimortgage, Inc.”
  
  In New York State, lenders have a limited amount of time to bring a foreclosure action against delinquent borrowers. New York law requires that actions upon a “mortgage of real property” must be commenced within six years. This statute of limitations in a foreclosure lawsuit begins to run upon commencement of the action, according to the Appellate Division 2nd Department of the Supreme Court of the State of New York in the case Zinker v. Makler, 298 AD 2d 516 (NY Appellate Div., 2nd Dept. 2002).
  
  In the Citimortgage case, the lender began a foreclosure action on March 17, 2009 and McCaffrey was able to get that case dismissed. The statute of limitations began to run on March 17, 2009 and expired on March 17, 2015. On March 13, 2009 Citimortgage attempted to circumvent the statute of limitations by sending out a letter which purported to de-accelerate the mortgage – that attempt was rejected by McCaffrey’s firm in writing. The Court agreed with McCaffrey and has expunged the Citimortgage from the record.

Source: New York Judge issues an order canceling a mortgage held by Citimortgage, Inc.

For the court ruling, see Soroush v. Citimortgage, Inc., Index No. 706506/2015 (Queens County Sup. Ct., January 11, 2016).