Stopping Foreclosure Sale, Adam Leitman Bailey, P.C. Protects Bank’s Mortgage by Allowing Sale and Tax Liens to Be Paid
Oscar Alvarez buys two adjoining Bronx lots in January 2003, Block 3916, Lots 4 and 40. Lot 4 has his house on it, Lot 40 has his garage. Chase Bank, which takes his mortgage, escrows funds for taxes on the residence lot (#4) and pays taxes as they come due.
The title company, Fidelity’s agent, does not file the deed until October 2006. During the intervening period, taxes come due on Lot 40. Bills are presumably sent out to the owner of record (Alvarez’s grantor), but not to Alvarez. At some time between date of sale and date of registration of the deed, the city sells the tax lien.
A judgment of foreclosure which includes assessment of taxes, penalties and interest was entered and a foreclosure sale was due to occur. Alvarez alleged that he never received notice of the foreclosure and first became aware there was a problem a few days before our retention when he received a letter from a “mortgage rescue” company telling his property was about to be sold.
Adam Leitman Bailey, P.C. was retained a few days before the foreclosure sale and prepared an OTSC to stay the sale. Once served the firm spoke with the purchaser of the lien’s counsel and, on behalf of Fidelity, the firm pledged to pay any lien amount. They called off the sale. The sale was rescheduled for a month and the issue was worked out by the mortgagee, the owner and the lienor. Fidelity did not have to pay out.