Six years after a mortgage is accelerated, the time to file a mortgage foreclosure action expires (with occasional exceptions). If the bank has not won a judgment of foreclosure and no mortgage foreclosure action is currently pending, the homeowner may file a quiet title action to discharge (remove) the mortgage lien from the property. When a homeowner wins quiet title, the property can be sold without paying the mortgage debt. The homeowner keeps the sales proceeds instead of the bank. Debt Inversion accomplished.
Unless the homeowner’s attorney includes an “affirmative defense” in the Answer to the Foreclosure Complaint stating that the action is barred by the applicable statute of limitations, the statute of limitations defense is lost and the bank can foreclose upon the property even though it started the foreclosure action too late.
Whenever possible, we have our client present when we inspect the alleged original promissory note because the client is the only person in the conference room who saw the original note when it was signed and initialed at the bottom of each page. Clients can easily tell if their own signatures and initials have been forged and they can spot differences between the original document they signed and the document being presented.
LENOIR LAW FIRM, PLLC
2585 Broadway, Suite 251
New York, NY 10025
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