New York State Appellate Division Affirms Order Vacating Judgment of Foreclosure in Tax Lien Foreclosure Action Thereby Preserving Lender’s $4,000,000.00 Mortgage

Our client is the holder of a $4,000,000.00 mortgage on a commercial building in Yonkers, New York, which mortgage was in default.  Simultaneously with our client’s mortgage foreclosure action, a tax lien foreclosure action was pending, in which our client was allegedly served.  The tax lien foreclosure action proceeded to Judgment of Foreclosure and sale thereby extinguishing the $4,000,000 mortgage.  Bradley D. Wank, Esq. obtained a stay of the transfer of the property, and following a hearing on the issue of the validity of service, an Order from the Supreme Court vacating the Judgment of Foreclosure, and dismissing the tax lien foreclosure action against our client.  On Appeal, the Appellate Division affirmed the Supreme Court’s Order, and thereby preserved our client’s $4,000,000.00 mortgage.  T10 Funding v. Baroda Properties, Inc., et. al., — AD3d —, 2014 WL1303508 (2d Dept. 2014)