Monday, November 25, 2013

M & T Mortgage Corp. v. Foy case brief

M & T Mortgage Corp. v. Foy case brief summary
20 Misc. 3d 274 (N.Y. Sup. Ct. 2008)

Defendant borrower sought to stay plaintiff lender's mortgage foreclosure action because she was in active military service overseas; the borrower also claimed that the mortgage constituted discriminatory reverse redlining.

The borrower, a reserve officer, was engaged on active duty when foreclosure proceedings were initiated against her property that was located within a minority neighborhood. The 30-year note and mortgage carried an interest rate of 9-1/2%. The borrower asserted that her military service placed her at a disadvantage because her frequent and lengthy absences from the country made it extraordinarily difficult for her to effectively repair and maintain her property so that she could attract and keep viable tenants and collect rents, which, in turn, interfered with her ability to make payments on the mortgage.


  • The court found that the borrower might have been the victim of reverse redlining under Banking Law § 6-l. 
  • Accordingly, the hearing would be continued based on the borrower's active military service overseas.

The hearing was stayed due to the borrower's active military service overseas.

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