Eviction After Foreclosure: New Decisions Clairify the Game

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Eviction After Foreclosure: New Decisions Clairify the Game

Eviction After Foreclosure: New Decisions Clairify the Game

New York Law Journal-

Eviction after foreclosure is unexpectedly a far more obscure and thorny pursuit than might be imagined. It could certainly benefit from clarity and resolution, something recent cases have helpfully supplied. One elusive area had been (although it could be opined, inappropriately) the effect of a foreclosure upon a tenant not named in the foreclosure action. The other troublesome realm was the obligation to “exhibit” to the recalcitrant holdovers the referee’s deed to the new owners.

The Later Tenant

A new case—meaningfully at the Appellate Term level—lucidly reaffirms a vital principle relating to the right of possession after a foreclosure sale [BH 2628 LLC v. Zully’s Bubbles Laundromat, 57 Misc.3d 63, 61 N.Y.S. 3D 809 (App. Term 2017)].

In this case, the trial court got it wrong and it engendered the time and expense of an appeal to vindicate the foreclosure sale purchaser. This happened too in a recent unreported case (the trial court reversed itself, though) suggesting a too prevalent misconception—that a tenant not named in the action cannot be evicted.

[NEW YORK LAW JOURNAL]

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