Thursday, August 28, 2014

Standing in a mortgage foreclosure action.

Practice point:  In a mortgage foreclosure action, a plaintiff has standing where it is the holder or assignee of both the subject mortgage and of the underlying note at the time the action is commenced. Either a written assignment of the underlying note or the physical delivery of the note prior to the commencement of the foreclosure action is sufficient to transfer the obligation.

Student note:  Where, as here, standing is put into issue by a defendant, the plaintiff must prove its standing in order to be entitled to relief.

Case:  Federal Natl. Mtge. Assn. v. Cappelli, NY Slip Op 05836 (2d Dept. 2014)

Here is the decision.

Tomorrow's issue: Commencing a tort action against a municipality.