Summary
holding that as a party to foreclosure action, a secondary mortgagee was not required to file a notice of claim to surplus moneys in order to preserve its right to satisfaction of its lien from surplus proceeds of foreclosure sale, citing RPAPL 1361
Summary of this case from Nyctl 1997-1 Tr. v. StellOpinion
February 26, 1996
Appeal from the Supreme Court, Suffolk County (Cannavo, J.).
Ordered that the order is affirmed, with costs.
As a party to the foreclosure action, the respondent, secondary mortgagee Marine Midland Bank, was not required to file a notice of claim to the surplus moneys in order to preserve its right to satisfaction of its lien from the surplus proceeds of the foreclosure sale (see, RPAPL 1361). We find no merit to the appellants' contention that Marine Midland Bank's notice of appearance, which was filed subsequent to the judgment of foreclosure, had no legal effect (see, Irving Trust Co. v Seltzer, 265 App. Div. 696; Freilicher v. CRF Gen. Contrs. Corp., 225 N.Y.S.2d 811). The Supreme Court therefore properly confirmed the Referee's report giving Marine Midland Bank first priority over the surplus moneys. Sullivan, J.P., Pizzuto, Goldstein and Florio, JJ., concur.