Deutsche Bank’s second attempt to foreclose on a Queens property gets tossed as New York’s new law enforces tough deadlines. Find out what this means for lenders
New York’s strict foreclosure law just blocked Deutsche Bank’s second attempt to reclaim a Queens property, spotlighting tough deadlines for lenders.
The facts go back to 2004, when Michael Feurtado took out a $335,000 mortgage from New Century Mortgage Corporation, secured by his home in Queens. Deutsche Bank National Trust Company later became the successor on the loan. In January 2010, the bank’s predecessor filed a foreclosure action, demanding the full balance. But the case sat idle for years. By June 2019, the court dismissed it as abandoned because the lender hadn’t moved for a default judgment within a year, as required by New York law.
Not giving up, Deutsche Bank filed a new foreclosure action in November 2019, again targeting the same mortgage. The bank moved for summary judgment, hoping to move the process along. Feurtado pushed back, arguing that the six-year statute of limitations for mortgage foreclosures had already run out. At first, the court sided with Deutsche Bank, granting its motion and denying Feurtado’s cross-motion.
Everything changed in December 2022, when New York enacted the Foreclosure Abuse Prevention Act (FAPA). This law was designed to stop lenders from repeatedly refiling foreclosure cases after dismissals for inactivity. FAPA specifically blocks lenders from using a six-month grace period to restart a foreclosure if the previous case was dismissed for being abandoned.
Feurtado quickly asked the court to reconsider, arguing that FAPA should apply to his case—even though the law was passed after the second foreclosure was filed. Deutsche Bank argued that retroactive application was unfair. The court initially agreed with the bank, but after Feurtado renewed his request, the court changed its mind. In September 2023, the court ruled that FAPA did apply retroactively and didn’t violate constitutional rights. The foreclosure action was dismissed as time-barred.
Deutsche Bank appealed, but on August 6, 2025, the Appellate Division, Second Department, upheld the decision. The judges said the statute of limitations started running in 2010, when the first foreclosure was filed and the full debt was demanded. Since the second action wasn’t filed until nearly four years after the deadline, it was simply too late. The court also confirmed that FAPA’s rule applied retroactively and blocked the bank from using the six-month grace period, since the first case was dismissed for inactivity.
For mortgage professionals, this case is a wake-up call. New York’s foreclosure rules are now stricter than ever, and missing a deadline can mean losing your right to foreclose – no matter the circumstances. The decision makes it clear: lenders and servicers need to stay on top of their cases and keep up with legislative changes. Letting a case sit too long or hoping for a second chance is no longer an option in New York’s courts.
