NY high court revives foreclosure actions, clarifies law

Christina Livorsi was quoted in the Reuters Legal article, "NY high court revives foreclosure actions, clarifies law." The article discusses the New York Court of Appeals reviving four foreclosure actions in a ruling that clarifies when lenders' actions trigger and revoke the statute of limitations. Chief Judge Janet DiFiore wrote for the court that when a mortgage loan has been validly accelerated by a prior foreclosure action, in the absence of a contemporaneous statement to the contrary, the lender's voluntary withdrawal of that action de-accelerates the loan, meaning subsequent foreclosure actions are not time-barred.

Livorsi, who argued the appeal on behalf of client Wilmington Savings Fund Society, FSB, DBA Christiana Trust, not individually but as Trustee for Pretium Mortgage Acquisition Trust (as successor in interest in this action to Ditech Financial LLC f/k/a Green Tree Servicing LLC), a lender in one of the four cases, was quoted as welcoming the ruling and saying it will bring uniformity and certainty for lenders and borrowers.

The case was also covered in "'A Clear Rule': NY Court Says Acceleration Automatically Revoked With Voluntary Dismissal of Foreclosure Action" in the New York Law Journal, which was syndicated in the Connecticut Law Tribune, "Day Pitney Scores Win in NY's High Court, Clarifying Revoked Acceleration in Foreclosure Action."