You are here: / / Bank May Still Be Lawful Holder of a Note and Mortgage, and Therefore Have...

Bank May Still Be Lawful Holder of a Note and Mortgage, and Therefore Have Standing to Bring a Foreclosure Action, After the Loan Has Been Sold

The Third Department reversed Supreme Court’s grant of summary judgment to defendant in a foreclosure action.  Supreme Court held that the plaintiff, Wells Fargo Bank, did not have standing to bring the foreclosure action because the loan had been sold to Fannie Mae at the time the action was started.  The Third Department explained that if Wells Fargo was the lawful holder of the note and mortgage when the action was brought, even though the beneficial interests in the note had been sold, it would have standing. “Holder status is established where the plaintiff possesses a note that, on its face or by allonge, contains an indorsement in blank or bears a special indorsement payable to the order of the plaintiff … .” Here a question of fact whether plaintiff physically possessed the note at the time the action was commenced precluded summary judgment:

Holder status is established where the plaintiff possesses a note that, on its face or by allonge, contains an indorsement in blank or bears a special indorsement payable to the order of the plaintiff (see UCC 1-201…). Notably, “[t]he holder of an instrument whether or not he [or she] is the owner may transfer or negotiate it[, and] discharge it or enforce payment in his [or her] own name” (UCC 3-301 … ).. Here, the note was originated by plaintiff and a copy submitted on the motion, alleged to be in plaintiff’s possession at the time it commenced this action, is endorsed in blank. Thus, notwithstanding the sale of the beneficial interests of the note to Freddie Mac, plaintiff has the right to enforce the note as its lawful holder so long as it can prove that it physically possessed the note at the time the action was commenced. Wells Fargo Bank, NA v Ostiguy, 2015 NY Slip Op 03015, 3rd Dept 4-9-15

 

You might also like
Failure to Strictly Comply with the Service Instructions in the Court’s Order to Show Cause (Which Included Service by E-Mail and Text Message) Required Dismissal of the Petitions
DEFENDANTS DID NOT AFFIRMATIVELY DEMONSTRATE THEIR PRODUCTS WERE NOT THE SOURCE OF ASBESTOS EXPOSURE, POINTING TO GAPS IN PLAINTIFFS’ PROOF IS NOT ENOUGH, DEFENDANTS’ MOTIONS FOR SUMMARY JUDGMENT SHOULD NOT HAVE BEEN GRANTED 3RD DEPT.
Question of Fact About Whether ATV Driven with Owner’s Permission Based Upon Owner’s Restrictions on Use of the ATV
Order Re: an Easement Allowing Plaintiffs Access to a Lake Was Specific Enough to Support Finding the Defendants in Civil Contempt (for Violation of the Order)—Willfulness Is Not an Element of Civil Contempt—Mere Act of Disobedience Is Enough
Relationship Between Mother and Father Had Not Deteriorated to the Extent that the Joint Custody Arrangement Should Have Been Modified to Award Sole Custody to Mother
THE ARBITRATOR EXCEEDED HIS AUTHORITY UNDER THE COLLECTIVE BARGAINING AGREEMENT BY DISMISSING TWO CHARGES BECAUSE OF THEIR PUPORTED FACIAL DEFICIENCIES AND FAILING TO ASSESSS THE EVIDENCE IN SUPPORT OF THE CHARGES (THIRD DEPT).
THE DEPARTMENT OF FINANCIAL SERVICES’ AMENDMENT TO AN INSURANCE REGULATION DESIGNED TO PROTECT CONSUMERS OF LIFE INSURANCE AND ANNUITY PRODUCTS IS VOID FOR VAGUENESS (THIRD DEPT).
ALTHOUGH FATHER IS INCARCERATED FOR ASSAULTING MOTHER WHEN SHE WAS SEVEN MONTHS PREGNANT, FATHER IS ENTITLED TO A HEARING ON WHETHER VISITATION WITH THE CHILD, WHICH NEED NOT INCLUDE CONTACT VISITATION, IS IN THE BEST INTERESTS OF THE CHILD; IT IS THE MOTHER’S BURDEN TO DEMONSTRATE VISITATION WOULD BE HARMFUL (THIRD DEPT).

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Disabled-Veteran Food Vendors Subject to the General Business Law—“Food”... Application to File Late Notice of Claim Should Have Been Granted—Plaintiff...