In the wake of the Court of Appeals’ landmark decision in Freedom Mortgage v. Engel, 2021 NY Slip Op 01090 (2021), the Second Department has subsequently followed the guidance in Engel in modifying a lender’s burden in rebutting statute of limitation challenges.  In Engel, the Court of Appeals, reversing contrary Second Department holdings, held that a voluntary dismissal, by itself, constituted an affirmative act to revoke a lender’s acceleration of a mortgage loan, thus resetting the six-year statute of limitations to commence a mortgage foreclosure action.  Now, the Second Department, in U.S. Bank v. Papanikolaw, __ A.D.3d __ (2d Dept. 2021), has held that the transmittal of a de-acceleration letter to the borrower, without more, similarly constitutes an affirmative act to revoke a lender’s acceleration.
Continue Reading De-Acceleration Notices, Post-Engel