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Under New York's one action rule, while an action is pending or after final judgment for the plaintiff, no other action may be commenced to recover the debt without the permission of the court in which the original action was brought.
Lender asks court for a judgment on default and to appoint a Referee to decide the amount you owe and write a report. Lender asks court to accept the Referee's findings. Judge orders sale of your home. Lender and Referee choose date for auction at the courthouse.
New York law provides that a lender has six years to commence a mortgage foreclosure action from the earlier of (i) the date that the lender accelerates the loan based on a borrower default or (ii) the maturity date. The most common default is, of course, a borrower's failure to make timely loan payments.
File and send an Answer The first step for you after receiving the summons and complaint is to file an Answer with the court and to send the Answer to the law firm that is representing the lender. If the lawsuit is given to you by personal service, you have 20 days from the date of delivery to file and send an Answer.
You do this by signing the Answer in front of a notary public. If you got an E-filing Notice with the court papers, this mean that you can serve and file your Answer over the internet using NYSCEF, the New York State Courts Electronic Filing system. Read about E-filing to see if this is something you want to do.