Successful Bidders at Foreclosure Sale Not Responsible

January 1, 1996

LVT Number: 10249

HPD sued landlord to obtain correction of housing violations of a building that had fallen into receivership. The petition named various parties as landlord. Two of them claimed they weren't ''owners'' and asked the court to dismiss the case against them. The two in question were successful bidders at a foreclosure sale and had entered a mortgage agreement with the mortgage holder. The agreement gave them the right to collect rents upon default and the right to start a nonpayment proceeding. But there was still a receiver who was in actual control of the building.

HPD sued landlord to obtain correction of housing violations of a building that had fallen into receivership. The petition named various parties as landlord. Two of them claimed they weren't ''owners'' and asked the court to dismiss the case against them. The two in question were successful bidders at a foreclosure sale and had entered a mortgage agreement with the mortgage holder. The agreement gave them the right to collect rents upon default and the right to start a nonpayment proceeding. But there was still a receiver who was in actual control of the building. The court ruled in favor of the buyers and dismissed the case against them. They weren't in actual control of the building.

HPD v. Murray: NYLJ, p. 26, col. 3 (12/13/95) (Civ. Ct. NY; Wendt, J)

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