Summary
The New York Court of Appeals’ decision last week,
Freedom Mortgage Corp v. Engel, contains two “reliable and objective rules permitting consistent application of the statute of limitations.”
What are those rules?
One, there must be an “unequivocal overt act” to accelerate indebtedness for a mortgage loan. A letter to the borrower stating that the “noteholder” will accelerate [his] mortgage with the full amount remaining accelerated and becoming due and payable in full, and foreclosure proceedings initiated at that time’” was not such an unequivocal overt act.
Engel, at 3. In other words, a letter expressing a future intention was insufficient.