Posted by Elliot S. Schlissel, Esq.
Justice Madden, sitting in the Supreme Court of New York County, recently dismissed a foreclosure proceeding because the plaintiff financial institution had no standing to sue. The court held that they had no standing to sue because they could not document that the mortgage had been properly assigned to them. The case involved was LPP Mortgage Ltd. v. Sabine Properties, LLC.
LLP Mortgage claimed that Sabine had defaulted in making mortgage payments to them. They had accelerated the mortgage (called it due) and asked for a judgment for the entire mortgage balance.
Justice Madden noted that the complaint submitted by LLP Mortgage Ltd. did not specifically identify the original institution that granted the mortgage. It also didn’t state how the mortgage was assigned to LLP Mortgage Ltd.
The attorneys for Sabine alleged that the mortgage was originally given by Wall Street Mortgage Banks. They also claim that Mortgage Electronic Registration Systems was acting as a nominee and was not the mortgage holder filed with the Registrar of Deeds in the City of New York.
Sabine Properties contended that LLP Mortgage did not provide the courts with documentation that this mortgage had been assigned to them.The court ruled in favor of Sabine Properties. The court held that LLP Mortgage could not show the rightful owner of the note and mortgage. Sabine Properties could not show a continuing chain of title as to how the mortgage became their property. On this basis. the court dismissed the lawsuit because they had no standing to sue.
Foreclosure Defense Lawyers
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