Carmel homeowner beats U.S. Bank

CARMEL- The Appellate Division of State Supreme Court has erased a U.S. Bank mortgage and ordered the lending institution to pick up the homeowner’s legal tab, freeing a Carmel resident after nearly two decades of litigation. 

The decision reached last week affirms a Putnam County court judgment that declared the lien unenforceable and directed county records to be cleared. 

The high court’s ruling ends a series of filings that began when U.S. Bank sued to foreclose in 2008.

U.S. Bank foreclosed on the property owned by John Williams prior to discontinuing the case four years later and re-filing additional actions in 2013 and 2014—matters that were consolidated and dismissed in 2019 for failures related to required notification.

Judges ruled that the Foreclosure Abuse Prevention Act prevents lenders from reviving or resetting a foreclosure limitation period simply by discontinuing and re-filing a case and the Appellate Division agreed that a statutory rule in the case left the high court little reason to accept U.S. Bank’s argument that earlier discontinuances gave it a fresh start.

The Appellate Division affirmed a judgment directing the Putnam County Clerk to cancel the mortgage from the land records and awarding costs to Williams, leaving U.S. Bank with limited immediate remedies unless it seeks further review.