Lombardo v. Fielding

225 A.D.2d 672, 639 N.Y.2d 483, 639 N.Y.S.2d 483, 1996 N.Y. App. Div. LEXIS 2608

• Court: Appellate Division of the Supreme Court of the State of New York
• Decided: March 18, 1996
• Status: Published

Opinion

Contrary to the appellants’ contention, RPAPL 1371 does not bar the instant action. New York law mandates that where a debt is secured by mortgages on two properties, and foreclosure of the first mortgage leaves a deficiency, the failure to obtain a deficiency judgment bars further proceedings to foreclose the second mortgage (see, RPAPL 1371; Sanders v Palmer, 68 NY2d 180). This requirement, however, applies only to mortgages secured by property located in New York State (see, Provident Sav. Bank & Trust Co. v Steinmetz, 270 NY 129; Yager v Rubymar Corp., 35 Misc 2d 517). Here, since the previous foreclosure action concerned property located in Florida, the fact that the plaintiff did not obtain a deficiency judgment in that action does not bar the instant action, which seeks to enforce the assignment of a mortgage secured by property located in New York State.

The appellants’ remaining contentions lack merit. Copertino, J. P., Pizzuto, Friedmann and McGinity, JJ., concur.