New York court upholds foreclosure dismissal after lender waited 3 years

A New York appeals court has upheld the dismissal of a mortgage foreclosure lawsuit after the lender waited three years to seek a default judgment against a defendant who had not responded. The decision enforces state rules that require lenders to take legal action within set deadlines. The ruling was issued on 22 October 2026 by the Supreme Court of the State of New York, Appellate Division, First Department. The judges upheld a lower court's decision to dismiss the foreclosure case because the lender failed to act within the required time after the borrower first failed to respond. According to court filings published by the Appellate Division, First Department, the property owner did not file a formal answer or appear in court in 2018 after receiving the summons and complaint.