Anyone know? it's been 60 days and if 120 days have passed and no word from them what should i do?
If an N-400 is denied, you can file the N-336. You did that as allowed by INA 336(a).
8 CFR 336.2 (b) imposes a 180 day period merely for USCIS to schedule your "second hearing". There is NO statutory or regulatory limit as to how long they can take to render a decision. That said, you can file for judicial review under 5 USC [probably] Sec. 702.
INA 310 (c)
Judicial Review.-A person whose application for naturalization under this title is denied, after a hearing before an immigration officer under section 336(a) , may seek review of such denial before the United States district court for the district in which such person resides in accordance with
chapter 7 of title 5, United States Code. Such review shall be de novo, and the court shall make its own findings of fact and conclusions of law and shall, at the request of the petitioner, conduct a hearing de novo on the application.
5 USC §702. Right of review
A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. An action in a court of the United States seeking relief other than money damages and
stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief therein be denied on the ground that it is against the United States or that the United States is an indispensable party. The United States may be named as a defendant in any such action, and a judgment or decree may be entered against the United States: Provided, That any mandatory or injunctive decree shall specify the Federal officer or officers (by name or by title), and their successors in office, personally responsible for compliance. Nothing herein (1) affects other limitations on judicial review or the power or duty of the court to dismiss any action or deny relief on any other appropriate legal or equitable ground; or (2) confers authority to grant relief if any other statute that grants consent to suit expressly or impliedly forbids the relief which is sought.
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You must argue that there has been an "unreasonable delay". You must find similar cases to support your argument. Other cases should involve similar issues and similar processing timelines.
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That said, your case is likely to remain denied and you are likely going to be barred from re-applying as previously discussed. If you can afford the time and money to file a lawsuit, you have that right.