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Case Study · Foreclosure Defense · Bronx County

HSBC won in 2019.The law changed.HSBC lost.

6+ yearsAfter the 2009 lawsuitThe law allows six years. Case dismissed for good.

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The Result
When HSBC sued again
6+ years
Its second case came too late.
HSBC's request to foreclose
Denied
Its 2019 win, undone on renewal.
Attorneys' fees
Awarded
A judgment for our clients against HSBC.
Supreme Court, Bronx County · 2026
Prior results do not guarantee a similar outcome. Every case turns on its own facts.
The Case

HSBC won in 2019.
In 2026 its case was dismissed.

Quick AnswerIn May 2026, Justice Naita A. Semaj of the Supreme Court, Bronx County, granted Petroff Amshen's clients leave to renew a May 17, 2019 decision that had given HSBC Bank, N.A. summary judgment in its foreclosure, and on renewal dismissed the case with prejudice as time-barred. Applying the 2022 Foreclosure Abuse Prevention Act, the court held that the stipulation ending an earlier foreclosure filed in 2009 "is silent as to revocation of acceleration," so HSBC was estopped from arguing the debt was never accelerated, and its case came more than six years after the 2009 filing. The court vacated the order of reference and granted our clients a judgment against HSBC for reasonable attorneys' fees.

What HSBC had already won

HSBC's predecessor first started a foreclosure on this Bronx mortgage on April 9, 2009. That case ended with a stipulation between the lawyers dated October 26, 2016. HSBC then brought a second foreclosure on the same mortgage.

In that second case, HSBC moved for summary judgment and our clients cross-moved to dismiss it as time-barred. HSBC argued the 2009 case had never accelerated the debt, because its predecessor had not served a notice of default first, and it said the loan was later reinstated. On May 17, 2019, the court accepted that, gave HSBC summary judgment and denied the cross-motion. An order of reference, appointing a referee, was also entered.

In our experience, summary judgment is the usual way banks win foreclosure cases. Once a bank has it, many people assume the fight is over.

What changed

After that ruling, New York enacted the Foreclosure Abuse Prevention Act of 2022. One part of it says that voluntarily discontinuing a foreclosure, "whether on motion, order, stipulation or by notice," does not reset the six-year statute of limitations. Another part bars a lender in a later foreclosure from claiming an earlier case did not validly accelerate the debt, unless the court in that earlier case expressly ruled so.

The court applied the new law to this case, even though the 2019 ruling came before the law passed.

How we beat it

We moved to renew the 2019 decision based on the change in the law and asked the court to dismiss the case with prejudice. HSBC repeated its old argument. Justice Semaj noted that its opposition was not backed by billing records or by an affirmation from anyone with first-hand knowledge of how the 2009 case was resolved. And even if it had been properly supported, the court said, "the arguments fail."

The stipulation discontinuing the 2009 action is silent as to revocation of acceleration or a determination that there was no proper acceleration.Supreme Court, Bronx County, Decision and Order, May 2026

Under the new law, that silence meant HSBC was estopped from arguing the debt was never accelerated. HSBC's case came "more than six years" after the 2009 filing. The court granted renewal, denied HSBC's motion for summary judgment, granted the cross-motion and vacated the order of reference.

We also asked for fees. The mortgage let the lender recover its legal fees, and under Real Property Law 282 that gives the other side a matching right. Having won dismissal with prejudice, our clients "established themselves as the prevailing party," the court held, and it entered a judgment against HSBC for their reasonable attorneys' fees.

The result

  • Renewal granted and the May 17, 2019 decision modified.
  • HSBC's motion for summary judgment denied and our clients' cross-motion to dismiss granted.
  • The order of reference vacated.
  • The foreclosure dismissed with prejudice as time-barred.
  • A judgment for our clients against HSBC for reasonable attorneys' fees.
HSBC said the 2009 case never started the clock. The court said the stipulation was silent.
Timeline

HSBC's win in 2019
did not survive the new law.

April 2009
HSBC's predecessor sues. The clock starts.
October 2016
That case is dropped by stipulation.
The second case
More than six years after 2009. Dismissed.

Under the 2022 law, dropping a case does not reset the six-year clock.

  1. Apr 2009
    HSBC's predecessor files the first foreclosure.
  2. Oct 2016
    That case is dropped by stipulation.
  3. May 2019
    The court grants HSBC summary judgment.
  4. 2022
    New York passes the Foreclosure Abuse Prevention Act.
  5. Mar 2026
    Our motion to renew is fully submitted.
  6. May 2026
    Dismissed with prejudice. Fees granted.
The Legal Record · Statute of Limitations

A silent stipulation.
That was the defense.

The record, in order: what the law gives a lender, how the 2009 case ended, and what the court held on each argument.

What the law gives a lender · CPLR 213(4)
6 years
A foreclosure must be brought within six years. Filing a foreclosure that calls the whole loan due starts the clock.
What ended the 2009 case · 2016
Silent
The stipulation "is silent as to revocation of acceleration." Under the 2022 law, HSBC could not argue otherwise.
The argumentHSBC saidThe Court held
01
The 2009 case called the loan due.CPLR 213(4)(c) · estoppel
HSBC saidThe 2009 case never accelerated the debt, because its predecessor had not served a notice of default.
The Court heldRejected
After FAPA, HSBC "was estopped" from that argument unless the document ending the 2009 case "expressly stated as much." It did not.
02
Dropping a case resets nothing.FAPA · CPLR 3217(e)
HSBC saidThe loan was later reinstated, and only the arrears were sought.
The Court heldRejected
The stipulation "is silent as to revocation of acceleration or a determination that there was no proper acceleration." This case came "more than six years" after 2009.
03
The 2019 ruling had to change.CPLR 2221(e)(2) · renewal
HSBC saidThe 2019 decision had already found the debt was never accelerated.
The Court heldModified
The 2019 decision "must be modified to align with the change in law." HSBC's motion denied, the case dismissed with prejudice.
04
The winner can recover attorney fees.RPL 282 · attorneys' fees
HSBC saidOur clients had not presented a valid defense.
The Court heldFor our clients
Having won dismissal with prejudice, our clients "established themselves as the prevailing party." Judgment against HSBC for reasonable attorneys' fees.
Sued in 2009. Dropped in 2016.The clock kept running.
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Legal Analysis · Plain English

What the Court decided,
and why it matters.

1. Six years from the first lawsuit

Under CPLR 213(4) a foreclosure must be brought within six years. Here the clock ran from the foreclosure HSBC's predecessor filed on April 9, 2009, and HSBC's case came more than six years later.

2. Dropping a case does not reset the clock

Under CPLR 3217(e), added by the Foreclosure Abuse Prevention Act, a voluntary discontinuance "whether on motion, order, stipulation or by notice" does not reset the limitations period. The 2009 case was dropped by stipulation in 2016, and that changed nothing.

3. A silent stipulation cannot undo the acceleration

Under CPLR 213(4)(c), a lender is estopped from arguing an earlier case did not validly accelerate the loan unless that case was dismissed on an express court ruling saying so. The 2016 stipulation said nothing of the kind, so HSBC could not make that argument.

4. A change in the law can reopen a ruling

CPLR 2221(e)(2) lets a party ask the court to renew a decision when there has been "a change in the law that would change the prior determination." That is how the 2019 summary judgment for HSBC was changed in 2026.

5. Fees run both ways

The mortgage let the lender recover its legal fees. Real Property Law 282 turns that into a matching right, and the court entered a judgment against HSBC for our clients' reasonable attorneys' fees.

If the bank already won a ruling against you

A summary judgment for the bank is a serious setback. Here it was not the last word. Seven years after HSBC won that motion, its case was dismissed with prejudice. A motion to renew based on a change in the law let the court apply the 2022 statute to a ruling from 2019.

If a lender dropped an earlier foreclosure against you and later sued again, look hard at the dates. If more than six years passed after the first case was filed, and nothing in the paperwork ending that case said otherwise, the new law may give you a defense the bank can no longer argue around.

Questions

Questions people search
about foreclosure in New York.

What is the statute of limitations for foreclosure in New York?
Six years under CPLR 213(4). A lender that calls the whole loan due, for example by filing a foreclosure, has six years from then to foreclose.
Does dropping a foreclosure by stipulation reset the clock?
No. Under the Foreclosure Abuse Prevention Act, a voluntary discontinuance "whether on motion, order, stipulation or by notice" does not reset the limitations period. Here the 2009 case was dropped by stipulation in 2016, and the clock kept running from 2009.
Can a bank argue its first foreclosure never called the loan due?
Not easily anymore. Under CPLR 213(4)(c), added by the 2022 law, a lender is estopped from making that argument unless the earlier case was dismissed on an express court ruling that the loan was not validly accelerated. Here the stipulation that ended the 2009 case "is silent as to revocation of acceleration or a determination that there was no proper acceleration."
The bank already won summary judgment. Can that be changed?
Sometimes. A motion to renew can ask the court to apply a change in the law to an earlier ruling. Here the court granted renewal of its May 17, 2019 decision, denied HSBC's motion for summary judgment and dismissed the case with prejudice. Every case turns on its own facts.
Does the 2022 foreclosure law apply to older cases?
In this case it did. The court noted "the retroactive application of FAPA" and applied it to a ruling from 2019.
Can a borrower recover attorneys' fees after winning a foreclosure case?
Yes, when the mortgage lets the lender recover its legal fees. Real Property Law 282 gives the other side the same right. Here our clients "established themselves as the prevailing party," and the court entered a judgment against HSBC for their reasonable attorneys' fees.
What does dismissed with prejudice mean?
The claim is decided for good and cannot be brought again. The court dismissed this foreclosure with prejudice as time-barred.
Does Petroff Amshen represent clients outside New York?
No. Petroff Amshen represents clients in New York only.
Glossary: the terms in plain English
Statute of limitations
The deadline to file a lawsuit. For a New York foreclosure it is six years under CPLR 213(4).
Acceleration
The lender calling the entire loan balance due at once, often by filing a foreclosure. It starts the six-year clock.
Stipulation
A written agreement between the lawyers. Here, the one that ended the 2009 case.
Voluntary discontinuance
A lender ending its own foreclosure case. Since FAPA, it does not reset the statute of limitations.
FAPA
The Foreclosure Abuse Prevention Act of 2022, which stops lenders from resetting the six-year clock.
Summary judgment
A ruling on the papers, without a trial. HSBC won it in 2019; the court changed that ruling in 2026.
Motion to renew
A request that the court decide again, based on new facts or a change in the law.
Order of reference
The order appointing a referee to compute what is owed, a step toward a sale. Vacated here.
Dismissed with prejudice
Decided for good. The same claim cannot be brought again.
RPL 282
New York Real Property Law 282. When a mortgage lets the lender recover legal fees, the other side can recover theirs when it wins.
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