NY Appellate Court Tells US Bank: Break the Chain Feel the Pain

This is an interesting ruling that was handed down by the New York Appellate Court. The court ruled the U.S. Bank failed to establish either that it had possession of the promissory note at the time the case was filed, or that it had otherwise acquired said note by a proper assignment prior to filing the foreclosure action against the home owner.

The lender attempted to use a post-filing corrective assignment of mortgage during foreclosure proceeding claiming that an original assignment, purportedly dated two weeks before the filing of the suit, was sent to the appropriate county office for recording, but was some how mysteriously lost prior to recording.

The court didn’t buy this claim and ruled in favor of the home owner.

2012 NY Slip Op 02481

U.S. BANK NATIONAL ASSOCIATION, ETC., respondent,
v.
JOSEPH DELLARMO, ALSO KNOWN AS JOSEPH DELL’ARMO, appellant, ET AL., defendants.

Read on.