HSBC vs. T. Islam
HSBC Bank, USA, National Association as Trustee for Nomura AssetAcceptance Corporation, Mortgage Pass-Through Certificates, Series 2006-AP1 v. Tahajul Islam, Sup Ct, Kings County, Feb. 23, 2024, Rivera, F., Index No.: 26142/2007. (Justin P. Robinson, Esq. conducted Trial for Plaintiff)
Facts: In this case the plaintiff commenced this action on July 17, 2007 against the defendant, among others, to foreclose a mortgage on certain real property. The mortgage was recorded on October 19, 2005. While the foreclosure action was being litigated, Plaintiff’s Notice of Pendency lapsed. While the Notice of Pendency lapsed, Defendant, Unlimited Assets Inc., took title to the property. Unlimited Assets filed an answer in the action. Trial was held over the course of three days. Unlimited Assets argued that because the loan was accelerated by the 2007 foreclosure action and the Notice of Pendency had lapsed when it took title in 2014, that Plaintiff’s loan was time barred as to it by the statute of limitations. New York law has a six-year statute of limitations for mortgage foreclosures under CPLR § 213(4).
Outcome: The Trial Court ruled in favor of Plaintiff holding that Unlimited Assets was not a bona fide purchaser for value because it only paid $10.00 for the property. Further, that Unlimited Assets did not do any due diligence when it took title. Had it, Plaintiff’s recorded mortgage would have given it notice of Plaintiff’s lien. Moreover, the Court held that Unlimited Asset’s assertion that the mortgage was timed barred as to it lacked merit because it stepped into the shoes of the borrower and the action was still pending.
Sources
HSBC Bank, USA, National Association as Trustee for Nomura Asset
