Thursday, July 19, 2018

Mortgage Foreclosure SOL: 5-Prong Acceleration Test

A mortgage foreclosure lawsuit has a 6-year statute of limitations pursuant to CPLR §213(4). However, dismissal for statute of limitations purposes is largely dependent on lender error because lenders have the unilateral ability to deaccelerate a loan and thereby restart the accrual date of the statute of limitations. As a result, lenders may, through careful monitoring of the statute of limitations, avoid exposure to statute of limitations’ dismissal. To clarify, a lender cannot restart the accrual date for previously defaulted mortgage payments, which will continue to be subject to the 6-year statute of limitations and date of default accrual. Instead, a lender can only avoid statute of limitations dismissal with respect to future installment payments, which are only in default because of a lender’s prior election to contractually accelerate such payments, which is generally done by summons and complaint (e.g., pleading that lender “hereby elects to declare immediately due and payable the entire unpaid balance of principal”). It is these accelerated payments which may be deaccelerated to reset the accrual date for statute of limitations purposes and thereby preserve the lender’s right to future suit. However, whether a deacceleration election is effective has been fragmented in the case law until now.

Read the full article, be Andrew Lieb. Esq, published in The Suffolk Lawyer here. 

Tuesday, July 10, 2018

Judge Strikes Down Title Insurance Regulation 208

Regulation 208 (11 NYCRR 228) is now annulled pursuant to New York County Supreme Court Justice Rakower’s decision and order on New York State Land Title Association (NYSLTA) et. al. v. New York State Department of Financial Services (DFS).

The Court annulled Regulation 208 in its entirety and reasoned, among others, that Regulation 208 is “irrational” and “internally inconsistent.”

DFS has filed its Notice of Appeal. Stay tuned as it is yet to be determined whether Regulation 208 would be reinstituted with a stay or otherwise.

Monday, July 9, 2018

Rules for Building on Tidal Wetlands

You have your property, and now you’re thinking about what more you can build. If you’re near tidal wetlands, there is much to consider. Construction on tidal wetlands is often disallowed, there are three permits required, the applicant needs competent representation and most importantly, a lot of patience.

Read the full article in Dan's Papers by Andrew Lieb, Esq. here. 

Monday, July 2, 2018

The True Cost of Moving On Up

How Much Will Upgrading to a New Home Actually Run You? 

Andrew Lieb, Esq. explains the true cost of moving on up in Dan's Papers. Read the full article here.