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“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Long Island Foreclosure Case Dismissed!
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Written by Craig D. Robins, Esq.Mortgage Company messes up resulting in foreclosure case being tossed out of court
Last year, a Nassau County family retained me to defend a mortgage foreclosure suit that had been just served upon them. They weren’t sure if they wanted to keep the house, which no longer had any equity. We discussed the possibility of a future bankruptcy, but we agreed to defend the foreclosure in the meantime to give them as much time in the house as possible.
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The mortgage was an adjustable rate mortgage that had recently jumped an incredible $1,500 a month. To make matters worse, the wife had been in a bad car accident and had become disabled.
After reviewing the mortgage foreclosure summons and complaint, I determined that I could properly assert several defenses. One of the defenses had to do with the fact that the mortgagee sold the mortgage to another mortgage company and it appeared that the new mortgagee did not properly file all of the necessary assignment papers.
Eventually the mortgage company brought a motion for summary judgment, claiming that the our defenses to the foreclosure were no good. I fought back, insisting that the mortgagee neglected to file all of the necessary assignment and transfer paperwork, and that they did not have proper legal standing to continue the foreclosure case.
After the Nassau County Supreme Court judge reviewed the foreclosure motion papers for several weeks, he issued a decision: foreclosure dismissed!!!
The judge agreed with my position that the mortgagee did not have standing because the mortgagee failed to demonstrate that the assignment paperwork was recorded. Accordingly, the judge dismissed the foreclosure action and complaint. Score a win for the homeowner!
Even if the mortgagee corrects their mistake and files another foreclosure proceeding tomorrow, the homeowners will still end up being able to stay in the house without making any further mortgage payments for another year. Then, they would have the right to file for bankruptcy and eliminate the mortgage company’s ability to pursue them for any mortgage deficiency.
Mortgage foreclosure defense is one of the many ways I help Long Island homeowners in these troubled financial times.
