Ditech Fin. LLC v Temple

Holding The Appellate Division held that a validly executed loan modification agreement de-accelerated the mortgage debt and reset the statute of limitations, rendering the subsequent foreclosure action timely. The court rejected the lower court’s reliance on res judicata and standing issues, finding that the agreement satisfied the writing requirements of General Obligations Law § 17-105 (1) to revive the lender’s right to sue.

The court’s words

The loan modification agreement acknowledged the mortgage debt and made an express promise to pay it, thereby satisfying the necessary writing requirements of General Obligations Law § 17-105 (1) to de-accelerate the loan and to reset the statute of limitations

252 AD3d 180, at the official text

Supreme Court erred in giving res judicata effect to a purported finding made in the 2016 decision and order in the Green Tree action that the loan modification agreement was unenforceable due to the lack of recording

252 AD3d 180, at the official text