In the wake of the July 24 expiration of the moratorium on residential evictions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the U.S. Centers for Disease Control (CDC) issued an order (CDC order) temporarily halting residential evictions in the United States for lower-income tenants who are unable to pay rent because of
Foreclosure Litigation
COVID-19 Related Eviction and Foreclosure Orders/Guidance 50 State Tracker
In response to the COVID-19 pandemic, the federal and state governments as well as many local governments have established regulations to temporarily suspend foreclosure and eviction activities. Perkins Coie has created an easy-to-use state-by-state guidance tracker for eviction and foreclosure orders related to COVID-19.
Coronavirus Uncertainty and the New York Foreclosure Statute of Limitations
In response to the ongoing coronavirus pandemic, New York’s Governor Andrew Cuomo issued two executive orders since March 20, 2020, suspending the state’s statute of limitations for the commencement of new court cases until May 7, 2020. Executive Order 202.14; Executive Order 202.8.
Likewise, New York’s Office of Court Administration issued two memoranda suspending,…
Quashing Subpoenas for Borrower Records
Beyond the Financial Services Modernization Act (also known as the Gramm-Leach-Bliley Act), which generally provides that a financial institution may not disclose a customer’s nonpublic personal information unless it falls under one of the general exceptions of 15 U.S.C. § 6802(e) (e.g., consent of the customer or compliance with a properly authorized civil subpoena), the failure to domesticate a subpoena remains one of the most utilized arguments in motions to quash.
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Second Circuit: Mortgage Foreclosure Constitutes “Debt Collection” Under FDCPA
The United States Court of Appeals for the Second Circuit recently made clear that foreclosure actions qualify as “debt collection” under the Fair Debt Collection Practices Act (FDCPA). See Cohen v. Rosicki, Rosicki & Assocs., P.C., 897 F.3d 75 (2d Cir. 2018). Thus, even if a foreclosure action is not seeking a deficiency judgment and the proceeding is strictly in rem, it now falls under the FDCPA debt collection umbrella in the Second Circuit.
In Cohen, the borrower appealed the district court’s dismissal of his FDCPA claims based on the defendants’ allegedly incorrect identification of Green Tree Servicing LLC as the creditor in the foreclosure complaint, certificate of merit, and request for judicial intervention. The basis for the district court’s dismissal of the case was that “enforcement of a security interest through foreclosure proceedings that do not seek monetary judgments against debtors” does not qualify as debt collection within the scope of the FDCPA. The Second Circuit disagreed. Cohen, aff’d, 897 F.3d 75 (2d Cir. 2018)…
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Limitations to the New York Foreclosure Statute of Limitations
Because New York residential foreclosures can take several years and several attempts to complete, it is essential for a statute of limitations analysis to be completed during all phases of the foreclosure proceedings. The discussion that follows includes some of the considerations that should be made during a statute of limitations analysis.
Background
Mortgage debt accrues as each installment becomes due, with a six-year statute of limitations running accordingly. CPLR 213(4); Koeppel v. Carlandia Corp., 21 A.D.3d 884, 800 N.Y.S.2d 607 (2d Dept. 2005). Where there is an acceleration clause giving the creditor the right to declare the whole amount due, the six-year statute of limitations begins to run on the full amount of the debt at the time of acceleration. Zinker v. Makler, 298 A.D.2d 516, 748 N.Y.S.2d 780 (2d Dept. 2002); EMC Mortgage Corp. v. Patella, 279 A.D.2d 604, 720 N.Y.S.2d 161 (2d Dept. 2001). While acceleration clauses can be categorized as automatic or optional, most clauses are not considered truly self-operative in nature. Seligman v. Burg, 233 A.D. 221, 251 N.Y.S. 689 (2d Dept. 1931). In most residential foreclosure actions, acceleration occurs at commencement of the action, which would include a provision explicitly calling the entire amount due. See, e.g., Walsh v. Henel, 226 A.D. 198, 235 N.Y.S. 34 (4th Dept. 1929).
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