November 26, 2025

Senator James Sanders Jr. Applauds Major Court Victory as New York Court of Appeals Upholds Retroactive Application of the Foreclosure Abuse Prevention Act

Albany, NY — Senator James Sanders Jr. today celebrated a major legal and legislative victory following a landmark decision issued on November 25, 2025, by the New York Court of Appeals. The Court ruled that the Foreclosure Abuse Prevention Act (FAPA) — legislation Senator Sanders strongly supported — applies retroactively to foreclosure cases statewide and does not violate the New York State, or the United States Constitution.

This pivotal ruling ensures that thousands of New Yorkers trapped in long-running or repeatedly delayed foreclosure cases now receive the full protections intended under FAPA, even if their case began years before the law was enacted in 2022.

“The Court of Appeals made it clear: fairness in foreclosure is not optional,” said Senator James Sanders Jr., Chair of the Senate Committee on Banks. “For too long, homeowners were dragged through endless litigation because of loopholes that empowered lenders to restart cases over and over again. FAPA closed those loopholes — and today’s ruling confirms that justice applies to past harm, not just future cases.”

Key Points from the Court’s Decision

• The Court affirmed that FAPA applies retroactively to all foreclosure actions where a final judgement of foreclosure and sale has not been enforced, even if it was unappealable at the time of enactment.
• The Court ruled that retroactive application does not violate substantive or procedural due process under the New York State Constitution or the contract laws of the US Constitution.
• The decision restores balance in mortgage litigation by preventing lenders from reviving expired claims or exploiting procedural technicalities to extend foreclosure cases indefinitely.

A Victory for Homeowners and Communities

With this ruling, homeowners across New York — many of whom have spent a decade or more fighting the same foreclosure case — now have solid legal ground to challenge stale or abusive filings.

“This is more than a legal win,” Senator Sanders continued. “It’s a victory for seniors, working families, and every New Yorker who has lived under the threat of losing their home to predatory practices. This ruling brings hope, dignity, and long-overdue stability to communities hit hardest by the foreclosure crisis.”

Senator Sanders’ Leadership on Foreclosure Reform

Senator Sanders has long championed mortgage fairness and foreclosure reform. His legislative efforts were central to the passage of FAPA, which corrected judicial interpretations that allowed mortgage holders to repeatedly restart the foreclosure clock, harming consumers and destabilizing neighborhoods.

The Court’s decision validates the Legislature’s intent to end these abuses and protect New Yorkers from financial ruin.

Helene E. Weinstein, Assembly Chief Sponsor of FAPA, said "These are sound decisions from our State's highest court. By making clear this law applies in the broadest way to shield as many as many as possible, the Court put an immediate stop to trial judges creating novel, unwarranted exceptions and limitations to FAPA’s protections, like when defendants are in default."

As for Senator Jeremy Cooney, he stated, "I am very happy the Court of Appeals followed our intentions so faithfully in yesterday’s FAPA decisions. I am even more relieved that the Court of Appeals resolved the conflict between the Second and Third Departments of the Appellate Division with the First Department, and gave clear directive for the lower courts “to apply [FAPA]… to shield as many borrowers as possible from those [abusive] practices,”  thus resolving the tension in Appellate Division case law regarding the breadth of FAPA’s intended application, including to post-appealable (unenforced) judgments (compare US Bank NA v Gallant, 237 AD3d 522, 523 [1st Dept 2025] with FV-I, Inc. v Samuels, 240 AD3d 757, 760 [2d Dept 2025] and Deutsche Bank Natl. Tr. Co. v Goldwasser, 237 AD3d 1291, 1292-93 [3d Dept 2025])."

Looking Ahead

Senator Sanders reaffirmed his commitment to strengthening homeowner protections and addressing ongoing inequities in the mortgage and banking industries.

"On behalf of my constituents, I extend our deep gratitude for the Court of Appeals’ recent FAPA decisions—an important step toward restoring fairness and efficiency to our foreclosure system. This marks progress in overcoming special rules favoring powerful interests. I look forward to continuing our partnership with the Office of Court Administration to ensure a just and effective judiciary for all New Yorkers."