Deutsche Bank lost its chance to foreclose on a Queens property after missing deadlines and running into New York’s tougher foreclosure law.
Here’s how it unfolded. Back in 2010, Deutsche Bank National Trust Company kicked off foreclosure proceedings against Mohammad Nuruzzaman and others over a residential property in Queens. Things didn’t go as planned. In 2017, the court dismissed the foreclosure—not because of the loan itself, but because Deutsche Bank failed to follow a court scheduling order. That kind of procedural misstep might seem small, but as this case shows, it can have major consequences.
Deutsche Bank tried to get the dismissal overturned, but the court denied the request. The bank then appealed, but that appeal was dismissed in 2020 for not being completed properly. Meanwhile, New York’s six-year statute of limitations for foreclosures was running out. Once a lender accelerates a mortgage, that six-year clock starts ticking, and if it runs out before a new foreclosure action is filed, the lender is out of options…