Keybank Nat'l Ass'n v. Barrett

178 A.D.3d 800

114 N.Y.S.3d 451

KEYBANK NATIONAL ASSOCIATION, etc., Respondent,

v.Eugene BARRETT, etc., et al., Appellants, et al., Defendants.

2017–08020

Index No. 35544/13

Supreme Court, Appellate Division, Second Department, New York.

Argued - June 18, 2019

December 11, 2019

Michael Kennedy Karlson, New York, NY, for appellants.

Shapiro, DiCaro & Barak, LLC (Reed Smith LLP, New York, N.Y. [Brian P. Matthews and Diane A. Bettino ], of counsel), for respondent.

MARK C. DILLON, J.P., JEFFREY A. COHEN, BETSY BARROS, FRANCESCA E. CONNOLLY, JJ.

DECISION & ORDER

In an action to foreclose a mortgage, the defendants Eugene Barrett and Hughenia Barrett appeal from a judgment of foreclosure and sale of the Supreme Court, Rockland County (Robert M. Berliner, J.), dated June 13, 2017. The judgment of foreclosure and sale, upon an order of the same court dated August 19, 2016, granting those branches of the plaintiff's motion which were for summary judgment on the complaint insofar as asserted against those defendants and for an order of reference, directed the sale of the subject property.

ORDERED that the judgment of foreclosure and sale is reversed, on the law, with costs, those branches of the plaintiff's motion which were for summary judgment on the complaint insofar as asserted against the defendants Eugene Barrett and Hughenia Barrett and for an order of reference are denied, and the order dated August 19, 2016, is modified accordingly.

The plaintiff commenced this action to foreclose a mortgage given by the defendants Eugene Barrett and Hughenia Barrett (hereinafter together the defendants). The defendants interposed an answer in which they asserted various affirmative defenses, including failure to comply with RPAPL 1304. The plaintiff subsequently moved, inter alia, for summary judgment on the complaint insofar as asserted against the defendants and for an order of reference. The defendants opposed the motion on the ground, inter alia, that the plaintiff failed to establish compliance with RPAPL 1304. By order dated August 19, 2016, the Supreme Court, inter alia, granted those branches of the plaintiff's motion. The Supreme Court thereafter issued a judgment of foreclosure and sale dated June 13, 2017. The defendants appeal from the judgment of foreclosure and sale.

To establish prima facie entitlement to judgment as a matter of law in an action to foreclose a mortgage, a plaintiff must produce the mortgage, the unpaid note, and evidence of default (see Deutsche Bank Natl. Trust Co. v. Abdan , 131 A.D.3d 1001, 16 N.Y.S.3d 459 ; HSBC Bank, USA v. Hagerman , 130 A.D.3d 683, 11 N.Y.S.3d 865 ; Plaza Equities, LLC v. Lamberti , 118 A.D.3d 688, 986 N.Y.S.2d 843 ). Additionally, in a residential foreclosure action, a plaintiff moving for summary judgment must tender "sufficient evidence demonstrating the absence of material issues as to its strict compliance with RPAPL 1304" ( Aurora Loan Servs., LLC v. Weisblum , 85 A.D.3d 95, 106, 923 N.Y.S.2d 609 ). RPAPL 1304(1), which applies to home loans, provides that "at least ninety days before a lender, an assignee or a mortgage loan servicer commences legal action against the borrower ... including mortgage foreclosure, such lender, assignee or mortgage loan servicer shall give notice to the borrower." The statute sets forth the requirements for the content of such notice, and provides that such notice must be sent by registered or certified mail and by first-class mail to the last known address of the borrower and to the subject residence (see RPAPL 1304[2] ). By requiring the lender or mortgage loan servicer to send the RPAPL 1304 notice by registered or certified mail and also by first-class mail, " ‘the Legislature implicitly provided the means for the plaintiff to demonstrate its compliance with the statute, i.e., by proof of the requisite mailing,’ which can be ‘established with proof of the actual mailings, such as affidavits of mailing or domestic return receipts with attendant signatures, or proof of a standard office mailing procedure designed to ensure that items are properly addressed and mailed, sworn to by someone with personal knowledge of the procedure’ " ( Bank of Am., N.A. v. Bittle , 168 A.D.3d 656, 658, 91 N.Y.S.3d 234, quoting Wells Fargo Bank, NA v. Mandrin , 160 A.D.3d 1014, 1016, 76 N.Y.S.3d 182 ; see Viviane Etienne Med. Care, P.C. v. Country–Wide Ins. Co. , 25 N.Y.3d 498, 508–509, 14 N.Y.S.3d 283, 35 N.E.3d 451 ; Nassau Ins. Co. v. Murray , 46 N.Y.2d 828, 829–830, 414 N.Y.S.2d 117, 386 N.E.2d 1085 ). Strict compliance with RPAPL 1304 notice to the borrower or borrowers is a condition precedent to the commencement of a foreclosure action (see Citimortgage, Inc. v. Banks , 155 A.D.3d 936, 936–937, 64 N.Y.S.3d 121 ; HSBC Bank USA, N.A. v. Ozcan , 154 A.D.3d 822, 825–826, 64 N.Y.S.3d 38 ; Aurora Loan Servs., LLC v. Weisblum , 85 A.D.3d 95, 923 N.Y.S.2d 609 ), and "the plaintiff has the burden of establishing satisfaction of this condition" ( Aurora Loan Servs., LLC v. Weisblum , 85 A.D.3d at 106, 923 N.Y.S.2d 609 ; see U.S. Bank N.A. v. Ismail , 170 A.D.3d 1066, 96 N.Y.S.3d 592 ; Citibank, N.A. v. Wood, 150 A.D.3d 813, 55 N.Y.S.3d 109 ; Flagstar Bank, FSB v. Damaro , 145 A.D.3d 858, 44 N.Y.S.3d 128 ).

Here, the plaintiff failed to establish, prima facie, that it complied with the requirements of RPAPL 1304 (see M & T Bank v. Joseph , 152 A.D.3d 579, 58 N.Y.S.3d 150 ; CitiMortgage, Inc. v. Pappas , 147 A.D.3d 900, 47 N.Y.S.3d 415 ; Bank of N.Y. Mellon v. Aquino , 131 A.D.3d 1186, 16 N.Y.S.3d 770 ; Deutsche Bank Natl. Trust Co. v. Spanos , 102 A.D.3d 909, 961 N.Y.S.2d 200 ). Contrary to the plaintiff's contention, the affidavit of Theresia Ang, assistant vice president for the loan servicer, PHH Mortgage Corporation (hereinafter PHH), which was submitted in support of the motion, was insufficient to establish that the notice was sent to the defendants in the manner required by RPAPL 1304 (see U.S. Bank N.A. v. Ismail , 170 A.D.3d 1066, 96 N.Y.S.3d 592 ; Citibank, N.A. v. Wood , 150 A.D.3d 813, 55 N.Y.S.3d 109 ). While Ang attested that "a ninety (90) day pre-foreclosure notice" was sent to the defendants "by registered or certified and first class mail," and...