Important Cases

Our office just received the attached decision from the Eastern District of New York decided by The Honorable Judge Nicholas G. Garaufis.
This decision determined the issue of abstention by the Federal Court to adjudicate over residential New York foreclosure cases.
It is a hot bed issue and is important because New York State has an intricate system and statutory framework for the prosecution of New York foreclosure cases.
It was argued by the defendant borrower that since New York has its own legal system in the NY foreclosure process to protect borrowers in residential foreclosure cases, including procedural safeguards in the law, that the Federal Court should abstain from hearing these types of cases.
The court extensively analyzed New York’s statutory protections.
The Federal Court ruled that it does not need not abstain from jurisdiction and can hear and decide New York residential foreclosure actions in Federal Court, provided there is diversity jurisdiction and the amount in controversy exceeds $75,000.00
This case puts to rest the argument made by defaulting borrowers that only State Court and not Federal Court should hear NY mortgage foreclosures
From our office, Alan H. Weinreb, Esq. and Alyssa L. Kapner, Esq. for the Plaintiff.
The Borrower Defendant was represented by Franklin H. Romeo and Christopher Newton of Queens Legal Services.