Summary
This Appellate Division decision addresses an appeal in a mortgage foreclosure action brought by Nationstar Mortgage, LLC against borrowers Joseph and Melissa Ricks. The court reversed the lower court's grant of summary judgment for the plaintiff, holding that the plaintiff failed to establish prima facie compliance with the statutory notice requirements under RPAPL 1304 and the mortgage agreement's conditions precedent due to insufficient affidavits regarding mailing procedures. The court also affirmed the trial court's discretion in denying the defendants' cross-motion to toll interest accrual during the COVID-19 pandemic.
Topics
Practice areas
Questions Presented
- Did the plaintiff satisfy the RPAPL 1304 notice requirement to support summary judgment and the foreclosure action?
- Should the trial court’s order confirming the referee’s report and granting foreclosure be affirmed?
- Should the defendants’ cross‑motion to toll interest accrual be granted?
Holdings
- The plaintiff failed to establish strict compliance with RPAPL 1304; therefore the summary‑judgment motion against Joseph and the order of reference are denied and reversed.
- The motion to confirm the referee’s report and the judgment of foreclosure and sale is denied; the order and judgment of foreclosure are reversed.
- The cross‑motion to toll interest is denied; executive orders do not toll private obligations.
Key quotations
“Strict compliance with RPAPL 1304 notice to the borrower or borrowers is a condition precedent to the commencement of a foreclosure action.” (at 2)
“The tracking numbers on the copies of the . . . notices submitted by the plaintiff, standing alone, did not suffice to establish, prima facie, proper mailing under RPAPL 1304.” (at 2)
Factual background
Nationstar Mortgage sought to foreclose on a Staten Island property owned by Joseph and Melissa Ricks. Joseph answered the complaint; Melissa failed to answer. The plaintiff moved for summary judgment against Joseph and a default judgment against Melissa, asserting compliance with RPAPL 1304 notice requirements.
Procedural history
The plaintiff commenced a foreclosure action in February 2019. The trial court granted summary judgment against Joseph Ricks, entered a default judgment against Melissa Ricks, and later confirmed a referee's report and ordered foreclosure. The defendants appealed the orders.
Remand instructions
The order and judgment of foreclosure and sale is reversed insofar as appealed; the summary‑judgment branches and order of reference are denied; the motion to confirm the referee’s report is denied; the orders dated September 8, 2022, and March 12, 2024, are modified accordingly.