What Does FAPA Stand For? The New York Foreclosure Abuse Prevention Act, Explained
What Does FAPA Stand For?
FAPA stands for the Foreclosure Abuse Prevention Act, a New York state law signed on December 30, 2022. It addresses how the six-year statute of limitations applies to mortgage foreclosure and limits the ways that limitations period can be extended or restarted.
What Does FAPA Stand For?
FAPA stands for the Foreclosure Abuse Prevention Act, a New York state law signed on December 30, 2022. It addresses how the six-year statute of limitations applies to mortgage foreclosure and limits the ways that limitations period can be extended or restarted.
Why did New York pass FAPA?
FAPA was a legislative response to the New York Court of Appeals decision in Freedom Mortgage Corp. v. Engel (2021). Under the prior framework, the statute of limitations on a foreclosure could be reset when a case was voluntarily discontinued and later refiled. The effect was that a foreclosure could be brought years after a homeowner believed the matter was resolved. FAPA was enacted to close that gap and to bring finality to the limitations period.
What did FAPA change?
FAPA amended New York law to:
- Clarify how and when the six-year statute of limitations is triggered (CPLR 213(4)).
- Provide that a voluntary discontinuance of a foreclosure does not reset the limitations clock.
- Provide that a unilateral de-acceleration of the loan does not extend the time to sue.
- Limit refiling a foreclosure action on the same default after the period has run.
- Codify the limitations framework into statute.
How does FAPA affect pending foreclosure cases?
FAPA was written to apply to foreclosure actions pending at the time it was enacted, not only to new filings.
The Court held that FAPA applies retroactively to foreclosure actions in which a final judgment of foreclosure and sale has not been enforced, and that applying it that way does not violate substantive or procedural due process under the New York Constitution (Article 13 LLC v. LaSalle National Bank Association and Van Dyke v. U.S. Bank). The Court noted that the six-year statute of limitations itself was unchanged.
The decisions did not resolve every question about FAPA. The Court did not reach the New York Takings Clause, and certain provisions and federal constitutional challenges may continue in the courts. How FAPA applies still depends on the facts of each case.
What may FAPA mean for New York homeowners?
For some New York homeowners, FAPA may mean that a foreclosure action is now time-barred and subject to dismissal under the six-year limit. In some situations, a homeowner may also pursue cancellation of a time-barred mortgage through a quiet title action under RPAPL Article 15 (Section 1501(4)). Whether any of this applies depends on the specific history of the case.
How Petroff Amshen Uses FAPA in Foreclosure Defense
Petroff Amshen LLP represents New York homeowners in foreclosure defense and raises FAPA where the facts support it. The firm's approach includes:
- Reviewing the full history of the foreclosure to identify limitations issues.
- Raising the statute of limitations as a defense where the period has run.
- Filing motions to dismiss on FAPA grounds where appropriate.
- Pursuing cancellation of a time-barred mortgage under RPAPL Article 15 where the facts support it.
“FAPA gave New York homeowners a clearer statute of limitations and closed the gap that let foreclosure timelines restart. For long-running cases, that can be a real defense.”
Steven Amshen, Founding Partner, Petroff Amshen LLPFrequently Asked Questions
Authoritative sources: CPLR 213 · RPAPL § 1304
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.