Improper Foreclosure May Derail Eviction Case

February 20, 2015

LVT Number: #25984

FNMA foreclosed on tenant-shareholder's cooperative apartment and then brought an eviction proceeding against tenant. Tenant, in turn, sued FNMA, claiming that the foreclosure was improper. Tenant asked the court to consolidate the eviction case from housing court with tenant's case and to stay the eviction case pending the outcome of tenant's claim. The court granted tenant's request to delay the eviction proceeding. FNMA only sent tenant a 30-day default notice.

FNMA foreclosed on tenant-shareholder's cooperative apartment and then brought an eviction proceeding against tenant. Tenant, in turn, sued FNMA, claiming that the foreclosure was improper. Tenant asked the court to consolidate the eviction case from housing court with tenant's case and to stay the eviction case pending the outcome of tenant's claim. The court granted tenant's request to delay the eviction proceeding. FNMA only sent tenant a 30-day default notice. FNMA hadn't given tenant a 90-day notice to resolve the matter prior to the nonjudicial foreclosure, and therefore, tenant's claim had merit. 

Newman v. Federal National Mortgage Association: Index No. 505778/14, NYLJ No. 1202713742262 (Sup. Ct. Kings; 12/23/14; Silber, J)

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