PennyMac Loan Servs., LLC v. Valdez

2026 NY Slip Op 00060 (Supreme Court of the State of New York Appellate Division First Department 2026) · Supreme Court of the State of New York, Appellate Division, First Department · January 8, 2026 · No. Index No. 36309/19; Appeal Nos. 5545-5546; Case Nos. 2025-02533, 2025-05673

Summary

The Appellate Division, First Department, unanimously affirmed a judgment of foreclosure and sale and dismissed as subsumed an appeal from an order denying Carlos Valdez's motion to vacate a default judgment or file a late answer. The court held that the plaintiff's affidavits established proper service under CPLR 308(2), and that Valdez failed to provide a reasonable excuse for his default.

Holdings

  1. The plaintiff's affidavits of service constituted prima facie evidence of proper service, and Valdez failed to rebut the showing of service at his residence.
  2. Valdez failed to establish a reasonable excuse for his default because he did not rebut plaintiff's showing of proper service.
  3. The appeal from the order denying Valdez's motion was dismissed as subsumed in the appeal from the judgment of foreclosure and sale.

Questions Presented

  1. Whether Valdez rebutted the affidavits of service and established that he was not properly served under CPLR 308(2).
  2. Whether Valdez demonstrated a reasonable excuse for his default sufficient to vacate the default judgment.
  3. Whether the appeal from the order denying vacatur was subsumed in the appeal from the judgment of foreclosure and sale.

Disposition

affirmed

Cases Cited (7)

  • Ocwen Loan Servicing, LLC v. Ali, 180 A.D.3d 591, 591 (1st Dep't 2020), leave dismissed, 36 N.Y.3d 1046 (2021)(followed)
  • Johnson v. Deas, 32 A.D.3d 253, 254 (1st Dep't 2006)(followed)
  • HSBC Bank USA, N.A. v. Gifford, 224 A.D.3d 447, 450 (1st Dep't 2024)(followed)
  • Nationstar Mtge., LLC v. Kamil, 155 A.D.3d 966, 967 (2d Dep't 2017)(followed)
  • PEP LLC v. Channel Creations LLC, 217 A.D.3d 591, 592 (1st Dep't 2023)(followed)
  • Citibank, N.A. v. K.L.P. Sportswear, Inc., 144 A.D.3d 475, 476 (1st Dep't 2016)(followed)
  • Lopez v. Mama's Fried Chicken, Inc., 202 A.D.3d 597, 598 (1st Dep't 2022)(followed)

Cited In (0)

No citing cases on record yet.

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