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Newrez, LLC v. City of Middletown, 2023 WL 3215240, AppDiv, Second Dept. (memorandum opinion)
In mortgagee's action to determine adverse claims to real property, the mortgagee appealed from Supreme Court's order denying mortgagee's motion to vacate an order dismissing its complaint. The Appellate Division reversed, holding that the complaint should not have been dismissed even though the mortgagee moved to vacate a tax sale after the redemption period had expired.
On Dec. 29, 2018, the city conducted an auction of tax liens, including one on the subject property. The auction resulted in a successful bid. The terms of sale for the action specified that the redemption period would expire on Dec. 30, 2019. On Oct. 1, 2019, mortgagee acquired an assignment of an existing mortgage. On Jan. 2, 2020 — three days after the redemption period expires — mortgagee requested an opportunity to redeem the lien, but was informed that the period had expired. Mortgagee then brought this action to vacate the tax lien sale and to compel the city to accept payment for redemption of the lien. When the city failed to respond, mortgagee sought leave to enter a default judgment. Supreme Court, on its own motion, denied mortgagee's motion and directed dismissal of the complaint. Mortgagee appealed from dismissal of the complaint.
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