Unrecorded Discharge
This week we wanted to direct your attention to a recent First Department decision which held that an unrecorded discharge of mortgage was insufficient to vacate an Order of Foreclosure. The relevant facts of and a link to the case are set forth below.
The Defendant moved for summary judgment dismissing the complaint, claiming that there was an unrecorded discharge of the mortgage being foreclosed. The Supreme Court, New York County, denied the Defendant’s motion, confirmed the referee’s report, and entered a judgment of foreclosure and sale. The Appellate Division, First Department, affirming the lower court’s ruling, stated that:
“[t]he affidavit from defendant’s officer ‘provided insufficient information that would authenticate’ the records relied upon [citation omitted], as the affidavit offered no explanation as to why the purported discharge was never recorded. Absent any corroborating evidence, the unauthenticated discharge was insufficient to raise an issue of fact [citations omitted].”
US Bank NA v. 532 W. 187 Realty LLC, 2022 NY Slip Op 07211, decided December 20, 2022, is posted at https://www.nycourts.gov/reporter/3dseries/2022/2022_07211.htm
Once again, this case serves as a reminder of the importance of timely recording documents that affect real property so that 3rd parties have adequate notice of your client’s property interests.
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