Jessie D. Bonaros

Loan servicer—Appellate win

Obtained for a loan servicer, the first mortgage holder in a foreclosure case, a reversal of a trial court decision granting the assignee of a second mortgage holder intervention in the case and tolling of loan interest. In reversing the decision, the New York appellate division found that the assignee failed to prove its standing to intervene because the promissory note was not properly indorsed even though the second mortgage holder provided an affidavit stating it was in possession of the note and had purchased the loan. With this win, our client will obtain a judgment of foreclosure and sale and obtain full recovery of the mortgage in a matter that originally had been scheduled as a write off as unrecoverable before being referred to us. 

Loan servicer—Renewal win

Obtained a favorable decision from a New York state court on a motion to renew a prior summary judgment ruling for the plaintiff lender and on a motion to dismiss a foreclosure action in favor of the loan servicer due to the defendants’ lack of standing, precluding the defendants from asserting the recently enacted Foreclosure Abuse Prevention Act (“FAPA”) to reopen the statute of limitations as an affirmative defense. While the court did not rule directly on the FAPA issue, the court noted our constitutional challenges to FAPA were “seriously colorable.”  

Investor—Summary judgment win

Obtained a favorable decision on summary judgment for investor client finding that assignee of lost note satisfied requirements of NY UCC 3–804 and established standing to foreclose. Claim that mortgage was void ab initio rejected on ground that borrower waived any right to repudiate the mortgage loan by accepting the benefits thereunder and by making seventeen payments without objection.

Loan servicer—Summary judgment win

Obtained a favorable decision on summary judgment for loan servicer client that precluded a meritorious RPAPL 1304 defense from being interposed in a foreclosure action on the ground that borrower waived the right to assert defense.  On a novel point of law, the court ruled that the terms of a consolidation, extension, and modification agreement may waive defenses to foreclosure, including RPAPL 1304 and the statute of limitations. 

Loan servicer—Appellate win

Obtained a favorable ruling for loan servicer client from New York’s Appellate Division, Second Department allowing late service of process six years after a foreclosure lawsuit was commenced and several years after the borrower vacated a judgment based on improper service and the statute of limitations had expired.

Institutional client—NY Court of Appeals win

Obtained a favorable ruling for institutional client from New York’s Court of Appeals establishing for the first time, as a matter of law, that payments made on a mortgage debt reset the mortgage foreclosure statute of limitations without a lender having to prove the borrower’s intent in making those payments.

Loan servicer—Appellate win

Obtained a favorable ruling for loan servicer client from New York’s Appellate Division, Second Department reversing the Supreme Court’s order, which, in effect, restrained the plaintiff note holder from revoking a prior election to accelerate the subject mortgage debt and dismissed the foreclosure action as time-barred. The Second Department reasoned that the prior election to accelerate was timely revoked via a de-acceleration notice and that plaintiff was not equitably estopped from revoking its election to accelerate.  

Loan servicer—Appellate win

Argued an appeal for a loan servicer client and obtained a favorable ruling from New York’s Appellate Division, Second Department that precluded a meritorious statute of limitations defense from being interposed in a foreclosure action on the ground that the defendant’s post-action conveyance of collateral property divested it of standing to contest the action.