The bank has five years from the date the last payment was received or the last payment should be made on the mortgage to file suit. The real question is why did they withdraw the other case. Are they having a problem finding the original papers? If so, they may never be able to foreclose.
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There can be several reasons why the bank stopped the foreclosure action. It may have to do with a technical defect in the loan instruments. It also may be that the bank made a business decision not to pursue the foreclosure at this time. The mortgage will remain a lien on your property (which means that it can be foreclosed) until five years from the date of the last payment due on the mortgage. If the mortgage instrument does not indicate the time the last payment is due, the mortgage remains a lien on the property for 20 years from the date of its recording. If you want more detailed information about your situation, you should contact an experienced real estate lawyer in your area.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
There can be many reasons that the lender withdrew its case. However, it is most likely that there was some irregularity in their paperwork that they or their attorneys discovered. They may reinstitute the action at any time by filing a new case. When and if you are served with papers on the new case, I would recommend that you seek the counsel of an experienced foreclosure defense attorney who will be able to guide you through the process and may be able to fend off the foreclosure action.
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