A year ago, pending in New York were nearly 26,000 legacy foreclosures—foreclosures arising from mortgages originated between 2004 and 2008. Many of these mortgages went into default shortly after origination, which was common among toxic mortgages from that period.

Legacy foreclosures are running up against New York’s six-year foreclosure statute of limitations, CPLR §213(4). Once the statute of limitations has expired, “any person having an estate or interest in the real property” may sue to discharge the mortgage. RPAPL §1501(4). Thus, the New York foreclosure statute of limitations is both a shield and sword.

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