THE BANK DID NOT COMPLY WITH THE “SEPARATE ENVELOPE” REQUIREMENT OF RPAPL 1304 IN THIS FORECLOSURE ACTION ENTITLING THE DEFENDANTS TO SUMMARY JUDGMENT DISMISSING THE COMPLAINT (SECOND DEPT).

The Second Department, reversing Supreme Court, determined plaintiff bank in this foreclosure action was not entitled to summary judgment on its motion to confirm the referee’s report and obtain a judgment of foreclosure. The defendants demonstrated the bank did not comply with the “separate envelope” rule in RPAPL 1304, which entitled to defendants to summary judgment dismissing the complaint:

… [T]he defendants established that the notices served by the plaintiff pursuant to RPAPL 1304 contained additional material in the same envelope as the RPAPL 1304 notice. The copies of the 90-day notice previously submitted by the plaintiff included additional notices not contemplated by RPAPL 1304(2), to wit, a notice pertaining to the rights of a debtor in bankruptcy, a notice to those in military service, and a notice advising customers to beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan … . Since the RPAPL 1304 notice was not “‘served in an envelope that was separate from any other mailing or notice'” … , the plaintiff did not strictly comply with RPAPL 1304 … . JPMorgan Chase Bank, N.A. v Dedvukaj, 2022 NY Slip Op 04541, Second Dept 7-13-22

Practice Point: If the defendants demonstrate the bank in a foreclosure action did not comply with the “separate envelope” requirement of RPAPL 1304 (by including other information in the envelope containing the notice of foreclosure), the defendants will be granted summary judgment dismissing the complaint.