Mortgagee-Tenant Decision – 11/19/20

The Appellate Term, Second Department, has ruled in favor of tenants against a purchaser at a mortgage foreclosure sale, in Lakeland v. Uvino.   The East Hampton Justice Court had issued two judgments against tenants, who had been in possession of the property at the time of the foreclosure sale, and in favor of the purchasers, totaling over $174,000.  On appeal, the Appellate Term found that the judgments were improperly awarded, because the purchaser, who was also the mortgagee who commenced the foreclosure action, had not properly “voided” the leases after the foreclosure sale.