Wilmington Sav. Fund Socy., FSB v. Rosenbaum

Summary

The New York Appellate Division, Second Department, affirmed an order and judgment dismissing a mortgage foreclosure action as time-barred and canceling and discharging the mortgage. The court held that the six-year statute of limitations began to run on the entire mortgage debt when the predecessor lender accelerated the debt by commencing a prior foreclosure action in December 2009, and that the plaintiff failed to establish lack of standing in the prior action.

Holdings

1. The appeal from the earlier order must be dismissed because the right to take a direct appeal from that order terminated upon entry of the order and judgment; the issues raised on that appeal remained reviewable on the appeal from the order and judgment.
2. Although separate causes of action accrue for unpaid installments of an installment mortgage, once the mortgage debt is accelerated, the statute of limitations begins to run on the entire debt.
3. The defendants were entitled to summary judgment because they established prima facie that the foreclosure action was commenced more than six years after acceleration, and the plaintiff failed to raise a triable issue of fact; the mortgage was properly canceled and discharged under RPAPL 1501(4).

Questions Presented

1. Whether the appeal from the earlier order had to be dismissed after entry of the subsequent order and judgment.
2. Whether the six-year statute of limitations for a mortgage foreclosure action began to run on the entire debt when the predecessor commenced the prior foreclosure action and accelerated the debt.
3. Whether the defendants were entitled to summary judgment dismissing the foreclosure complaint as untimely and to cancellation and discharge of the mortgage under RPAPL 1501(4).
4. Whether the plaintiff raised a triable issue by arguing that its predecessor lacked standing to commence the prior foreclosure action.

Disposition

affirmed