Tenants Can't Vacate Foreclosure Judgment for Lack of Notice

June 30, 2011

LVT Number: #23445

Tenants asked the court to vacate a judgment of foreclosure and sale against the building owner because they were never given notice of the foreclosure. The court ruled against tenants. Although they were necessary parties to the foreclosure, they weren't indispensable parties. The bank's failure to name tenants didn't render the foreclosure judgment and sale defective. The failure to notify tenants did leave them unaffected by the judgment and sale.

Tenants asked the court to vacate a judgment of foreclosure and sale against the building owner because they were never given notice of the foreclosure. The court ruled against tenants. Although they were necessary parties to the foreclosure, they weren't indispensable parties. The bank's failure to name tenants didn't render the foreclosure judgment and sale defective. The failure to notify tenants did leave them unaffected by the judgment and sale. In addition, amendments to Real Property and Proceedings Law Section 1303 that required service of notice of the foreclosure and sale on tenants became effective after the foreclosure action started. So the law didn't apply in this case.

Flushing Savings Bank v. 509 Rogers LLC: Index No. 29529/09, NYLJ No. 1202496245353 (Sup. Ct. Kings; 5/23/11; Hinds-Radix, J)

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