ON HOMEOWNER'S LATE ANSWER IN MORTGAGE FORECLOSURE

The First Department ruled in favor of the homeowner in HSBC USA v Lugo 2015 NY Slip Op 03070 on April 14 pointing out:

1. The delay was not willful.

2. The delay did not cause any prejudice to the bank.

3. There was a merit to the affirmative defense with respect to standing.

4. Both parties had engaged in settlement talks for almost 2 years.

There was a very strong dissent.

See http://law.justia.com/cases/new-york/appellate-division-first-department/2015/13454-381904-09.html