Understanding the Legal Battle

In the case of Wilmington Savings Fund Society, FSB v. Williams*, homeowners John Williams and Karen Anderson found themselves in the throes of a foreclosure action initiated by their lender. The legal proceedings centered around the lender's compliance with specific procedural requirements before a foreclosure action can be commenced. These procedural steps are critical as they ensure homeowners are adequately notified and given a chance to rectify the situation before losing their homes.

An initial order denied our cross-motion seeking to dismiss the complaint or have a chance at amending the answer, as we were retained after the initial answer period. Our appeal granted us the answer, taking in our appellate claims as the amended answer.

The Importance of RPAPL 1304

A key aspect of the case was the application of RPAPL 1304, a legal requirement that mandates lenders to send homeowners a 90-day notice before starting foreclosure proceedings. This notice must be sent in a separate envelope from any other correspondence and cannot contain false or misleading information. The intent is to provide homeowners with a clear warning and opportunities to avoid foreclosure, such as seeking mortgage assistance or restructuring their loan.

The Court's Decision: A Ray of Hope

The court's decision was twofold. First, it found that the defendants did not prove that the 90-day notice was non-compliant with RPAPL 1304, thus not dismissing the foreclosure action outright. However, and most importantly for our clients and all homeowners facing similar challenges, the court allowed John and Karen to amend their defense. This aspect of the decision underscores the judiciary's openness to allowing homeowners to present additional arguments or evidence that could potentially save their homes from foreclosure. Immediately on amending the response as our appeal, the charges were rendered without merit and the home was thoroughly preserved.