Adam Leitman Bailey, P.C. Protects CitiMortgage in Common Charge Lien Foreclosure Proceeding
In The Board of Managers of Waverly Park Condominium v. Metzger, et. al., Adam Leitman Bailey, P.C. successfully protected CitiMortgage’s security interest in a Suffolk County property, in defeating the plaintiff’s claim that CitiMortgage did not hold the “first mortgage of record” as is defined by § 339-z of New York’s Real Property Law.
The plaintiff named CitiMortgage in its common charge lien foreclosure proceeding in an attempt to subordinate CitiMortgage’s first position interest in the premises. The earliest loan of record was, in fact, satisfied from the proceeds of the CitiMortgage loan, (making CitiMortgage the mortgagee protected by RPL § 339-z), however, the plaintiff board saw an opening and refused to accept a late answer from CitiMortgage, who was not originally aware of the action.
Adam Leitman Bailey, P.C. was hired to protect CitiMortgage’s priority interest in the premises. Recent case law and hard negotiation was used to successfully procure a stipulation of discontinuance from the board at no cost to the insured, but since the board also had a motion seeking an order of reference pending, additional protections were needed. Ultimately, Adam Leitman Bailey, P.C. ensured the protection of CitiMortgage’s first position interest by devising and filing a cross-motion seeking an order removing CitiMortgage as a defendant, striking its name from the caption, and deeming the plaintiff’s foreclosure complaint to recite that the premises are being sold subject to CitiMortgage’s first lien.
The Title Litigation Group at Adam Leitman Bailey, P.C. won this case for the insured, with Jackie Halpern Weinstein representing the firm.