Bill > A08721

This bill amends the Real Property Actions and Proceedings Law to clarify a defendant's rights in foreclosure cases. Specifically, the bill allows a defendant to raise defenses of lack of standing or expiration of the statute of limitations even after a default judgment has been entered, without first having to vacate that judgment. In practical terms, this means that homeowners facing foreclosure can challenge a lawsuit on procedural grounds (such as the bank not having proper legal authority to foreclose or the case being filed too late) even if they did not initially respond to the lawsuit and a default judgment was issued against them. The bill applies to home loan foreclosure proceedings and will take effect immediately, covering both new foreclosure actions and existing actions where a final judgment has not yet been enforced. This change provides additional protections for defendants in foreclosure cases by preserving their ability to assert critical legal defenses, even after missing an initial opportunity to respond to the lawsuit.

Justice

https://www.nysenate.gov/legislation/bills/2025/A8721