Adam Leitman Bailey, P.C. Fast-Forwards Foreclosure Proceeding for Lender with an Unrecorded Deed
Lender Bank of New York Mellon Trust Company, N.A. could not foreclose on a mortgage it held secured by a property in Queens, NY, as the deed to the property into the borrower was unrecorded. Instead of commencing an RPAPL Article 15 to quiet title, however, which would have stalled the lender’s foreclosure by at least one year, Adam Leitman Bailey, P.C. successfully recorded the deed without litigation.
Despite various fraud allegations haunting the property from a 2009 EDNY Federal Action commenced by the FDIC as receiver for AmTrust, and facing a chain of title with an already recorded deed to an individual other than the borrower, ALB, P.C. collected and pieced together various transfer documents, contracts, and powers of attorney from the closing file to attempt recordation of the deed.
Using its contacts at the Office of the City Register, who clarified the reasons why the deed was originally rejected for recording, Adam Leitman Bailey, P.C. was able to present the deed in a form that would be accepted by the recording clerks, and successfully got the deed recorded against all odds.
Even though both the lender and the insuring title company was directing that a quiet title action be commenced, Adam Leitman Bailey, P.C. fought against the litigation strategy, which resulted in saving the lender at least one year in carrying costs and fees associated with holding a non-performing asset and saving the title company thousands in legal fees.
Jackie Halpern Weinstein of the Foreclosure and Title Litigation Groups at Adam Leitman Bailey, P.C. strategized and corrected this chain of title for the lender.