The New York FAPA Law Gives New York Homeowners The Ability To Body Slam Their Lenders In A Foreclosure!

New York FAPA Law
The New York FAPA Law can help you save your home!

The New York FAPA Law (Foreclosure Abuse Prevention Act) went into effect on January 1st. FAPA was created because judges across New York were fed up with lenders abusing the New York court system. As a result, the New York Legislature didn’t disappoint. So, last year, they passed the New York FAPA Law (Foreclosure Abuse Prevention Act) went into effect on January 1st.

The law is a big win for homeowners. It puts significant restraints on what lenders, servicers and investors can do and not do when foreclosing.

Lenders and banks claim the new law jeopardizes their ability to recover their mortgage debt. They complain the law not only affects any future foreclosures. They say it also affects all foreclosures currently in litigation.

Judge have been finding lenders and foreclosure mill attorneys have abusing the court system since the financial crisis of of 2008. They found lenders have been dismissing foreclosure actions and refiling them intentionally just to drive up legal for homeowners.

Judges say the vast majority of New York foreclosures have been in and out of litigation for nearly a decade. They say this is due lenders and foreclosure mill lawyers abusing and clogging up the courts.

MFI-Miami previously wrote about the law. The law would enforce the New York’s 6-year statute of limitations on foreclosure litigation.

What The New York FAPA Law Says And How It Benefits You!

Key provisions of the new law include:

  • A lender’s voluntary discontinuance of a foreclosure will no longer re-set the six-year statute of limitations. Under the new law, a unilateral action by a lender does not extend the statute of limitations for a foreclosure action. Therefore, the law time-bars lenders from foreclosing on the mortgage after the 6-year statute of limitations. 
  • The new law amends New York’s “election of remedies” law. The law bars lenders from attempting to recover the debt after the statute of limitations.
  • The law also prohibits lenders from telling homeowners that the statute of limitations did not expire. The legislature was forced to add this provision during debate on the bill. Why? Foreclosure mills like to abuse the courts by making creative arguments of why the statute of limitations doesn’t apply. They will make crazy claims like their client did not validly accelerate the loan. Under the new law, the lender would not be permitted to assert that acceleration was invalid.
  • The new law applies retroactively to any active and pending foreclosure action filed before December 30, 2022. 

MFI-Miami has helped hundreds of people successfully fight to stay in their homes. The New York FAPA law is homeowner’s life line when facing foreclosure!

MFI-Miami also works with some of the best foreclosure defense litigator in New York. They have stopped foreclosures using FAPA!

Call us today at 888.737.6344 to learn more about how you may be able to use the New York FAPA law to save your home.

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