BNY Mellon missed the window to refile a foreclosure—and the court shut it down. Here's what mortgage pros need to know about critical timing mistakes
A foreclosure case filed by Bank of New York Mellon just got thrown out over timing—and it's a reminder to servicers everywhere: deadlines matter more than ever.
In a June 18 decision, New York’s Appellate Division, Second Department, upheld the dismissal of a foreclosure action brought by Bank of New York Mellon against Brooklyn homeowner Tyrana Jones. The court affirmed that the action was time-barred under New York’s six-year statute of limitations for mortgage foreclosure cases.
The original foreclosure action began on April 29, 2009, when the bank sued Jones and others to foreclose on a mortgage for a Brooklyn property. In that complaint, the bank elected to call due the full unpaid balance—effectively accelerating the debt. This triggered the six-year statutory clock under CPLR 213(4).
In July 2013, the bank moved to voluntarily discontinue the 2009 action and cancel the notice of pendency. The court granted the discontinuance on December 8, 2015.
However, Bank of New York Mellon didn’t initiate a new foreclosure action until May 23, 2023—well over six years after the original acceleration. Jones moved to dismiss the new complaint, arguing that the claim was time-barred and citing the Foreclosure Abuse Prevention Act (FAPA), which became effective on December 30, 2022.
The court agreed. The ruling confirmed that voluntary discontinuance of the 2009 case did not reset the statute of limitations. It also rejected the bank’s arguments challenging the retroactive application and constitutionality of FAPA, citing consistent appellate authority on the matter.
The decision reinforces that once a loan is accelerated, the limitations period begins—and voluntary discontinuance won’t restart the clock. This ruling aligns with other recent decisions interpreting FAPA strictly against lenders.
For mortgage professionals and servicers operating in New York, the message is clear: managing acceleration and litigation timelines is now more critical than ever. A misstep could mean losing the right to foreclose entirely.
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