A foreclosure case that began more than a decade ago came to a halt last week after a New York appeals court ruled that the mortgage holder didn’t follow a key pre-foreclosure rule. The June 4 decision from the Appellate Division, Second Department, reversed a foreclosure judgment against Brooklyn homeowner Esther Welz because of a technical slip-up involving how notice was sent before the lawsuit began.
Wells Fargo Bank, N.A. originally filed the foreclosure action in November 2013 against Esther and Marvin Welz over a residential property in Brooklyn. Esther Welz filed her answer in November 2019. The loan was later transferred—first to Wilmington Savings Fund Society, FSB, and then to 1900 Capital Trust II.
Wilmington moved for summary judgment on the complaint as asserted against Esther, to strike her answer, and for an order of reference. In August 2022, the Supreme Court, Kings County, granted those motions and appointed a referee to compute the amount due. After Wilmington transferred the interest, 1900 Capital moved to confirm the referee’s report and obtain a judgment of foreclosure and sale. That relief was granted in an order and judgment dated April 27, 2023…