The New York Supreme Court in Suffolk County recently ruled on a significant foreclosure case involving Deutsche Bank National Trust Company and Michele Werner. The court's decision, issued on July 17, 2026, has implications for how mortgage foreclosure actions are handled in the state, particularly under the new Foreclosure Abuse Prevention Act (FAPA).

This ruling affects homeowners facing foreclosure and lenders pursuing such actions. The case highlights the complexities of mortgage law and the importance of timely legal action in foreclosure proceedings.

Background

In the case of Deutsche Bank National Trust Co. v. Werner, filed under Index No. 623864/2023, Deutsche Bank served as the plaintiff, seeking to foreclose on a property owned by Michele Werner. The dispute began with a previous action initiated by Deutsche Bank in June 2014, which was dismissed in January 2022 due to the bank's failure to comply with the Real Property Actions and Proceedings Law (RPAPL) section 1304.

The initial dismissal led Deutsche Bank to file an appeal, but the case took a turn with the introduction of FAPA, which amended several laws related to foreclosure actions. FAPA went into effect on December 30, 2022, and aimed to protect homeowners from potential abuses in foreclosure processes.

After the dismissal of the first action, Deutsche Bank filed a new action in September 2023, claiming it was within the timeline allowed by the new laws. Michele Werner, the defendant, contested this, arguing that the new action was untimely and should be dismissed.

The Ruling

Judge Thomas F. Whelan ruled on the motions presented by both parties. The court denied Deutsche Bank's motion for summary judgment against Michele Werner, deeming it moot. However, the court granted Werner's cross-motion to dismiss the complaint against her, effectively ending the case for her.

The court stated, "the action is hereby dismissed as against Michele Werner only."

Additionally, the court granted Deutsche Bank's requests for default judgments against other non-appearing defendants and for the appointment of a referee to compute amounts due under the mortgage. The ruling emphasized the importance of timely service of process in foreclosure actions, particularly under the new FAPA guidelines.

Impact

This ruling sets a significant precedent in New York foreclosure law, particularly regarding the interpretation of the FAPA. The court clarified that under the new law, service of process must be completed within a specific timeframe, which can impact how lenders approach foreclosure actions.

Homeowners may find this ruling beneficial as it reinforces the need for lenders to adhere strictly to legal timelines and requirements. This could potentially lead to more favorable outcomes for homeowners defending against foreclosure actions, as the court emphasized the procedural aspects of filing and serving legal documents.

What's Next

Deutsche Bank may have the option to appeal the court's decision regarding Michele Werner. A status conference is scheduled for September 24, 2026, to address further proceedings in the case, unless a motion is filed before September 22, 2026, which could alter the need for the conference.