LIEB BLOG

Legal Analysts

Showing posts with label real estate litigation. Show all posts
Showing posts with label real estate litigation. Show all posts

Tuesday, November 14, 2023

New Law for Foreclosures / Evictions with Deed Theft

On November 14, 2023, Governor Hochul enacted A06656, amending Section 756-a of New York State's Real Property Actions and Proceedings Law. This amendment is designed to safeguard real property owners from the threat of not resolving claims of potential deed theft fast enough while an eviction or foreclosure is pending. 


This amendment permits a stay of any proceeding to recover possession of or resoling title disputes concerning residential properties when there are underlying issues of deed theft or title disputes. This provision applies specifically when there is a pending good faith investigation into the theft or fraud in the title to, or the financing of, the premises that is the subject of any proceeding for eviction or foreclosure.

This measure will serve as a safeguard, mitigating the risk of homeowners who may, unknowingly, lose their residences.


If an individual is convicted of a criminal offense related to deed theft or fraudulent transactions involving real property, this conviction gives rise to a rebuttable presumption of fraud in the deed transfer, so filing charges needs to be part of a strategic litigation strategy moving forward. In fact, if you file, the District Attorney or Attorney General is then entitled to seek the nullification of the deed transfer. The implicated individual must establish by a preponderance of the evidence that the deed was not procured through fraudulent means.


This amendment goes into effect December 14, 2023. 



Tuesday, December 24, 2019

New Law: Foreclosure Standing Never Waived - Renew Your Case Today

On December 23, 2019, S5160 was enacted and "the defense, in a mortgage foreclosure action, of the plaintiff's lack of standing is not waived because of the defendant's failure to raise such defense in his or her responsive pleading."

A standing defense is utilized to argue that the plaintiff is not the right party to sue in that it's not the owner of the mortgage or debt and has not been appointed the power by such owner to pursue the lawsuit. This is one of the most significant changes to the foreclosure litigation practice since the Great Recession and will impact litigation for years to come.

Real Property Actions and Proceedings Law section 1302-a is an early Christmas present to defendants in ongoing litigation as it took effect immediately and appears to apply up until sale even if a Judgment of Foreclosure has already been ordered. Specifically, the new section states that "[a] defendant may not raise an objection or defense of lack of standing following a foreclosure sale." As such, it appears the defense of standing can be raised at any time before the sale.

If you are defending a case that is post-Judgment of Foreclosure and Sale and pre-auction sale, you may want to consider bringing an Order to Show Cause with a Motion to Renew pursuant to Civil Practice Law & Rules Rule 2221-e immediately.

Monday, November 25, 2019

Co-op Purchaser Application Fees Eliminated by Tenant Protection Act?