During the COVID-19 New York court closures, Adam Leitman Bailey, P.C. was retained by a note owner to change in as counsel in a stalled foreclosure action in Bronx County. A foreclosure auction was completed in the action in November 2019, but despite repeated demands from the plaintiff’s prior counsel, the third party high bidder refused to close due to the current climate.
Given the court closures, and the fact that the referee was holding a deposit that would only be released by court order, the plaintiff was stuck, as it was unable to re-notice a sale and/or retain the deposit as damages without a court order.
Upon substitution, Adam Leitman Bailey, P.C. demanded that the third party high bidder immediately close. Counsel for the bidder rejected the demand, arguing that Governor Cuomo’s Executive Orders and Justice Mark’s Memorandums stayed foreclosure proceedings.
Adam Leitman Bailey, P.C. argued that the foreclosure action was complete as of October 2018 when the Judgment of Foreclosure and Sale was entered, and, regardless of the fact that the high bidder was not a borrower protected by the orders. Further, Adam Leitman Bailey, P.C. went on to inform the bidder that if he failed to close, Adam Leitman Bailey, P.C. would seek forfeiture of the deposit for re-noticing the sale, plus fees and costs.
Knowing that Adam Leitman Bailey, P.C. was prepared to proceed with motion practice, the third party high bidder agreed to move forward with the closing. Less than six weeks after being retained, and during a pandemic with all offices closed, Adam Leitman Bailey, P.C. completed the third party closing by mail with a clear title and secured the purchase funds for the note owner.
Jackie Halpern Weinstein, Esq. and Danny Ramrattan, Esq. of the Foreclosure and Title Litigation Groups at Adam Leitman Bailey, P.C. secured this result for the note owner.