Miss a foreclosure deadline in New York? Nationstar just learned how costly that mistake can be
A New York court just shut down lenders’ ability to revive foreclosure cases after missing key deadlines.
On November 5, 2025, the Appellate Division, Second Department, handed down a decision in Nationstar Mortgage, LLC v. Oliveri that’s set to change how lenders approach foreclosure timelines in the state. If you’re in the mortgage business, this one’s worth your attention.
Here’s what happened. Back in 2009, Nationstar’s predecessor tried to foreclose on a property in Massapequa, New York, naming Christina Oliveri and others as defendants. Oliveri didn’t respond, and the case sat idle. By 2011, the court tossed out the foreclosure for inactivity. Fast forward more than a decade, and Nationstar tried again in 2022 to foreclose on the same property. This time, Oliveri fought back, arguing that too much time had passed and the lender was out of luck.
Nationstar’s team thought they could rely on New York’s so-called “savings provision,” a rule that sometimes gives lenders a six-month window to restart a case after it’s been dismissed. But the courts saw it differently. The Supreme Court in Nassau County sided with Oliveri, and when Nationstar appealed, the appellate judges agreed.
The big reason? The Foreclosure Abuse Prevention Act, or FAPA, which kicked in at the end of 2022. This law was designed to crack down on drawn-out foreclosure cases and make sure lenders move quickly. Under FAPA, if a foreclosure is dismissed because the lender didn’t act, that’s it – no do-overs, no second chances through the old six-month rule.
The judges made it clear: FAPA means what it says. If a lender lets a foreclosure case stall and it gets dismissed for inactivity, they can’t come back later and try again using the savings provision. That’s a big shift from how things used to work, and it puts the pressure on lenders and servicers to keep their cases moving.
This decision is a wake-up call. If you’re handling foreclosures in New York, you need to be on top of your timelines. Missing a deadline or letting a case sit too long could mean losing the right to foreclose altogether. There’s no safety net anymore.
The court also brushed aside arguments that FAPA shouldn’t apply retroactively or that it was unconstitutional. In short, the law stands, and lenders need to adjust.
What’s the takeaway for the mortgage industry? The rules of the game have changed. Lenders and servicers can’t afford to be complacent about foreclosure timelines. This isn’t just about one property in Massapequa; it’s about how every foreclosure case in New York will be handled going forward.
If you’re in the business, now’s the time to review your processes, make sure your team understands the new landscape, and avoid the pitfalls that caught Nationstar off guard. The message from the court is simple: act fast, or risk losing your shot.
