On December 30, 2022, New York Governor Kathy Hochul signed into law the Foreclosure Abuse Prevention Act (FAPA) after the bill’s passage by both the New York state senate and the assembly. FAPA is a direct response to a New York Court of Appeals decision, Freedom Mortg. Corp. v Engel, 37 N.Y.3d 1, reargument denied, 37 N.Y.3d 926 (2021) that seemingly gave lenders the right to unilaterally restart foreclosures and avoid a statute of limitations bar. FAPA seeks to curb a lender’s right to toll or extend the limitations period by amending existing state laws that affect the tolling of the limitations period for foreclosure actions and a lender’s use of New York’s saving statute to preserve the statute of limitations on an otherwise time-barred debt.
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