Adam Leitman Bailey, P.C. Protects Bank of America, N.A. in Common Charge Lien Foreclosure Proceeding
In Board of Managers of the Willows Condominium v. Shobha Chepuru and Bank of America, Adam Leitman Bailey, P.C. successfully protected Bank of America’s security interest in a Westchester County property, in defeating the plaintiff’s claim that Bank of America did not hold the “first mortgage of record” as is defined by § 339-z of New York’s Real Property Law.
Section 339-z gives first priority to the earliest lender with a loan recorded in the chain of title for a property over a board with a common charge lien being foreclosed. Here, the earliest lender of record held a loan that was previously satisfied; however, no satisfaction was ever recorded. The plaintiff’s board therefore alleged that Bank of America was not entitled to the protection of RPL § 339-z because it was technically not the first mortgage according to the record.
To defeat the board’s crafty attempt to elevate form over substance, Adam Leitman Bailey, P.C. ultimately procured a Satisfaction of Mortgage from the predecessor lender, as well as a needed duplicate original corrective assignment missing from the chain, and successfully recorded the assignment and the satisfaction in the public record. Adam Leitman Bailey, P.C.’s strategy forced the plaintiff’s board to discontinue Bank of America from the action based on its status as first mortgagee of record.
Adam Leitman Bailey, P.C. thus protected Bank of America’s first position interest in the premises without the need for even a filed answer or motion to dismiss in the action.
Jackie Halpern Weinstein of the Title Litigation Group at Adam Leitman Bailey, P.C. won this case for Bank of America.