Our firm recently obtained the dismissal of a foreclosure case that Deutsche Bank brought against our client. We alleged that the bank had failed to prosecute the action. In New York, failure to prosecute a case is a basis for dismissal under the civil practice rules. The court agreed with our argument and dismissed the case.
This was an important victory for our client because the bank had "accelerated" the mortgage debt more than six years before the dismissal. Once a debt is accelerated, it is due all at once rather than in monthly payments. However, the bank only has six years to bring a case and collect the debt after it is accelerated. Now, the bank will not be able to bring a new foreclosure case.
The decision can be found here.