Another New York Court Rejects A Mortgage Holder’s Foreclosure Action

Another New York court has rejected a foreclosure action, albeit without prejudice to the mortgage holder’s right to file a new suit, on what might be considered “technical” reasons. In this case, the court ruled that the plaintiff had not properly demonstrated that it had exercised due diligence in attempting to serve the defendant. Moreover, the court found that the plaintiff, which had acquired the mortgage via an assignment from Mortgage Electronic Registration System, Inc. (“MERS”), had improperly brought suit prior to the date of execution of the written assignment, even though the assignment itself indicated that it was “effective” before the suit had been filed.

The case is Citigroup Global Mkts. Realty Corp. v. Randolph Bowling, 2009 N.Y. Slip Op. 52567(U) (Sup. Ct. Kings Co. Dec. 18, 2009).