Foreclose Action Dismissed and Mortgage Cancelled!

People negotiating a contract.

In a case from upstate New York Justice Phillip Rumsey sitting in the Supreme Court entered an order dismissing a foreclosure lawsuit brought by Citibank. In addition, he removed the mortgage from the homeowners’ property.

Citibank had initiated a foreclosure lawsuit against the Bravos. The homeowners claimed as their defense that Citibank did not have standing to bring this lawsuit because they were not the holder of the note on their property. Justice Phillip Rumsey had granted an order precluding Citibank from offering any evidence at trial of the homeowners’ indebtedness. In addition, he also precluded them from offering evidence they were the current holder of the note.

Citibank Appeals

Citibank brought an appeal to the Appellate Division. The Appeals Court found that Citibank had engaged in a pattern of conduct giving rise to an inference of willfulness sufficient for Judge Rumsey to impose a preclusion sanctions order.

The Homeowners Strike Back

Attorney Elliot SchlisselThe homeowners thereafter moved for summary judgment dismissing Citibank’s foreclosure lawsuit and they asked that the court discharge and cancel the mortgage by Citibank against their property. The homeowners claimed the preclusion order would prevent Citibank from establishing evidence necessary to allow Citibank’s foreclosure to move forward. Justice Rumsey noted the defendants’ argument was correct. Citibank would be prevented from establishing the material elements necessary in their mortgage foreclosure case. They could not establish their ownership of the debt.

Justice Rumsey granted the homeowners’ summary judgment motion and dismissed the foreclosure lawsuit. In addition, he granted the homeowners’ request for an order removing the mortgage from their home.


Justice Rumsey is a judge from upstate New York who punishes banks who act improperly in their dealings with homeowners regarding their mortgages.

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