Bank's Post-Foreclosure Termination Notices Defective

After a foreclosure, HSBC Bank served a 90-day notice to vacate on tenant, followed by a 10-day notice to quit. The bank then sued to evict tenant. Tenant asked the court to dismiss the case, claiming that the notices were defective. The notices weren't signed by the bank, but by individuals supposedly working for the bank's agent, Ocwen Loan Servicing. The court ruled for tenant. The individuals who signed the notices weren't specifically named in the limited power of attorney authorizing Ocwen Loan Servicing to act on the bank's behalf. One notice also failed to state whether the signer was an employee of the bank or Ocwen. And the limited power of attorney didn't specifically name any of Ocwen's agents with authority to sign. The notices were fatally defective, and the case was dismissed.

HSBC Bank USA NA v. Tavarez: Index No. 54331/11, NYLJ No. 1202517141983 (Civ. Ct. Queens; 9/15/11; Katz, J)