A New York court just handed lenders a win – here's how this ruling helps mortgage professionals keep foreclosure actions on track
New York’s top mortgage court says lenders can file a new notice of pendency in foreclosure – even if the previous one expired.
That’s the takeaway from an August 6, 2025, decision by the Appellate Division, Second Department, in Wells Fargo Bank, N.A. v Russo – a ruling that brings some welcome clarity to New York’s foreclosure process for lenders and servicers.
The case began when Wells Fargo Bank started foreclosure proceedings against James Russo and others over a property in Howard Beach, Queens. In 2017, the bank filed its initial notice of pendency, a standard move to alert anyone interested that the property was subject to a lawsuit. These notices last three years, so as the case continued, Wells Fargo filed an amended notice in March 2020.
By 2023, the court had appointed a referee to determine the amount due. The referee’s report came in May, and in July, Wells Fargo filed another notice of pendency before asking the court to confirm the report and approve the foreclosure sale. The defendants didn’t challenge the motion.
But the Supreme Court in Queens County denied Wells Fargo’s request. The judge ruled that the July 2023 notice was invalid because the previous notice had expired and Wells Fargo hadn’t requested an extension before it lapsed. The usual rule is that if a notice expires, you need to get an extension ahead of time or risk losing your place in the process.
Wells Fargo appealed, arguing that foreclosure cases are different. The bank pointed to a section of New York law that allows lenders to file a new notice of pendency in foreclosure actions even after a previous one expires, as long as it’s before the final judgment. The law is designed to ensure lenders can protect their interests throughout the often lengthy foreclosure process.
The appeals court agreed. It held that in foreclosure actions, lenders are allowed to file a new notice of pendency after a previous one has expired, provided it’s done before the final judgment and sale. The court reversed the lower court’s decision, allowing Wells Fargo to move forward with the foreclosure.
For mortgage professionals, this decision means less risk of having to restart a foreclosure if a notice of pendency expires. As long as a new notice is filed before the final judgment, the process can continue. The ruling removes some uncertainty from what can be a long and technical process.
While this decision may not draw attention outside the industry, it’s a practical update for anyone managing foreclosures in New York. The bottom line: keep your paperwork up to date, but know there’s some flexibility if a notice lapses. In foreclosure work, that’s a useful detail to have.
