Adam Leitman Bailey, P.C. Protects Home Loan Investment Bank, F.S.B. as First Lien Holder
In Home Loan Investment Bank v. Lauday Inc. and Aretha Barrett Realty Corp., et. al., Case No. 1:09-cv-03088-ERK in Federal Court, Eastern District, Adam Leitman Bailey, P.C. negotiated a so-ordered stipulation declaring Home Loan Investment Bank’s $1,435,000 mortgage to be a valid, first priority interest secured by a series of properties in Brooklyn, despite certain counterclaims asserted against its client in this foreclosure proceeding by defendants, who alleged that their unrecorded equitable mortgages should take priority over the interests of Home Loan Investment Bank.
Despite these potentially devastating allegations of priority, Adam Leitman Bailey, P.C. prevailed in successfully settling this title dispute with a court-ordered stipulation, at no cost either to the bank or to the title insurance company, without the need for depositions or motion practice. The stipulation was ordered by the court to be recorded into the chain of title for the properties, putting the world on notice of Home Loan Investment Bank’s confirmed secured interest.
After tedious discovery and due diligence, Adam Leitman Bailey, P.C. was able to prove that the complaining defendants’ “right” to record the equitable mortgages did not vest until after the date that Home Loan Investment Bank recorded its mortgage, thereby establishing Home Loan Investment Bank as a bona fide purchaser without knowledge, and successfully quieting title pursuant to Article 15 of the New York State Real Property Actions and Proceedings Law.
Jackie Halpern Weinstein prevailed on strategizing, negotiating, and drafting; Adam Leitman Bailey and Colin E. Kaufman were the managing partners on the case.