Victory for Lender: Appellate Court Reinstates Default Judgment in $536K Queens Foreclosure Case

In Wilmington Savings Fund Society, FSB v. Cabadiana, the Appellate Division, Second Department heard an appeal taken in a Queens County residential mortgage foreclosure action. The plaintiff initiated the foreclosure after the defendants defaulted on a $536,000 mortgage. The defendants were served with the summons and complaint but failed to appear or answer the complaint, leading the trial court to issue a default judgment and order of reference in January 2022.

Subsequently, the defendants moved to vacate the order, citing improper service and requesting permission to file a late answer. The trial court partially granted their motion, allowing them to serve a late answer. On appeal, however, the Appellate Division reversed this decision, finding that the defendants did not demonstrate a reasonable excuse for their default or a lack of personal jurisdiction, nor did they provide sufficient evidence that they had not received the summons in time to defend the action. Specifically, the Appellate Division noted “bare and unsubstantiated denials of receipt of the summons and complaint were insufficient to establish they did not receive actual notice of the summons in time to the defend the action pursuant to CPLR 317.”

The appellate court’s ruling underscores the importance of timely response and substantiated claims in foreclosure defense, reaffirming the trial court’s original order of reference. Congratulations to the successful litigating attorney, Ronald Labeck Esq.