As a follow up to our May post, FAPA in the Spotlight Again: Second Circuit Renews Call for NY Court of Appeals Review, the New York Court of Appeals has finally agreed to consider New York’s Foreclosure Abuse Prevention Act’s (FAPA) reach and constitutionality in the case of Art. 13 LLC. Interestingly, on the same day the Court of Appeals accepted the Second Circuit’s request, New York’s highest court also agreed to review a separate decision from the First Department, which found that it is constitutional to apply the FAPA amendments retroactively in the case of Van Dyke. Both appeals stem from actions seeking to cancel and discharge mortgages, where the New York trial courts previously held that the statute of limitations for foreclosure had expired.
Oral arguments for both appeals will be heard on October 16, 2025, during which the Court of Appeals will consider FAPA’s retroactive application and constitutional challenges. Notably, the Court of Appeals does offer simultaneous broadcast of oral argument, which can be accessed here.
These cases are pivotal for stakeholders in the real estate and banking sectors, including borrowers, lenders, and legal professionals. The decisions will impact how foreclosure actions are conducted in New York, potentially altering the landscape of mortgage enforcement and borrower protections. The implications of the forthcoming decisions could lead to changes in foreclosure practices, affecting the rights and obligations of both parties involved in mortgage agreements.
