New York court wipes U.S. Bank mortgage off the books in FAPA ruling

The bank did not meet that deadline. Instead, it voluntarily dropped the 2008 case in January 2012. Then came a second foreclosure in December 2013, a third in July 2014, and eventually the second and third cases were merged and went to trial – only to be thrown out in August 2019 because the bank failed to send Williams the proper required notices. Then came a fourth and final attempt in December 2019.

That last filing was the problem. By December 2019, more than eleven years had passed since the bank first accelerated the debt and commenced foreclosure proceedings in February 2008. Williams moved to have the fourth case thrown out on those grounds, and the lower court agreed with him: the case was filed too late, the mortgage was unenforceable, and the bank had to walk away.

U.S. Bank appealed, arguing that dropping the 2008 case had effectively reset the six-year window, giving it a fresh start. The court said no. New York’s Foreclosure Abuse Prevention Act, or FAPA, closes that door completely. Under FAPA, a lender cannot reset the clock by simply walking away from a case and starting over. Once the timer starts, it runs.

The bank also argued that FAPA itself was unconstitutional. The court was not persuaded, pointing to prior decisions that had already settled that question.

The appellate court issued its decision on February 25, 2026, though the opinion remains subject to revision before it is published in the official court reports. The outcome: the mortgage is declared unenforceable, cancelled from the county records, and Williams walks away with his property free and clear. The court even ordered U.S. Bank to pay Williams’ legal costs.