HSBC Bank USA, N.A. v. Cayo

OPINION OF THE COURT

Herbert Kramer, J.

Is it equitable to permit the defendant in a foreclosure action to file an answer two years post-commencement? In this action, where the defendant alleges valid affirmative defenses and the parties have engaged in both private and court supervised negotiations, this court holds that equity permits the filing of a late answer.

This application triggers the necessity to review the procedure in mortgage foreclosure actions and the effect that settlement conferences, both statutorily mandated and informal, have had on the standard progress of litigation.

This…