Mortgage Lender Can Evict Proprietary Lessee

Proprietary lessee of a co-op apartment defaulted on his mortgage loan, and his lender became the owner of the co-op stock. The lender then sued to evict lessee under Real Property Actions and Proceedings Law Section 713(5). Lessee asked the court to dismiss the case. He claimed that the court didn't have the authority to rule on a case involving co-op shares. The court ruled against the lessee. Although a co-op apartment is considered personal property by law, it was part of a building that was real property. So when the co-op was foreclosed on, lessee no longer had any rights to the apartment and the lender became the co-op shareholder. The co-op shareholder can bring an eviction action against an occupant who no longer has any ownership interest in the co-op apartment.

Emigrant Mortgage Co., Inc. v. Greenberg: Index No. LT-006930-10, NYLJ No. 1202545780025 (Dist. Ct. Nassau; 3/8/12; Fairgrieve, J)