A New York appeals court just sent a clear message – lenders who skip required foreclosure notices could lose their case. Are your compliance processes up to scratch?
A New York appeals court has reinforced the need for lenders to strictly follow notice rules before foreclosing on a mortgage.
On August 13, 2025, the Appellate Division, Second Judicial Department, decided Wells Fargo Bank, N.A. v Sakizada. The case began when Wells Fargo Bank sought to foreclose on a $536,250 consolidated mortgage after borrower Yaacov Sakizada defaulted. Sakizada responded by arguing that the bank had not properly provided the required notice of default before starting the foreclosure.
Wells Fargo moved for summary judgment, aiming to strike Sakizada’s answer and appoint a referee to determine the amount due. The bank submitted an affidavit from its vice president of loan documentation and documents showing that notices were sent on America’s Servicing Company (ASC) letterhead, a business name used by Wells Fargo. The trial court agreed with the bank, finding that it had met the notice requirements under both the mortgage agreement and New York’s Real Property Actions and Proceedings Law (RPAPL) 1304, and granted summary judgment in favor of Wells Fargo.
Sakizada appealed, challenging whether Wells Fargo had actually complied with the notice provisions. The appellate court reviewed the evidence and determined that the bank had not established, as a matter of law, that it strictly followed the required notice procedures. The court pointed out that strict compliance with both RPAPL 1304 and the mortgage agreement’s notice of default provision is a necessary step before a foreclosure can proceed. Because Wells Fargo did not meet this burden, the appellate court reversed the lower court’s order and denied the bank’s motion for summary judgment. The court also awarded costs to Sakizada.
For mortgage professionals, this decision highlights the importance of carefully following all notice requirements in foreclosure actions. The court’s ruling makes clear that lenders must provide clear evidence of compliance with every step required by law and the mortgage contract. Simply submitting an affidavit or referencing internal business practices is not enough if the documentation does not clearly show that the notices were properly sent.
The outcome of Wells Fargo Bank, N.A. v Sakizada is a reminder to lenders, servicers, and legal teams to review their procedures and ensure that all statutory and contractual steps are followed and documented before pursuing foreclosure. Missing or incomplete notice can result in delays, additional costs, and even the loss of a foreclosure action, regardless of the underlying facts of the loan.
This decision is particularly relevant for those in the mortgage industry, as it reinforces the need for thorough compliance in every foreclosure case. It serves as a practical guide for avoiding procedural pitfalls and maintaining best practices in an area where attention to detail is essential.
