Justice Francois Rivera
Rossrock Fund II moved to appoint a referee to compute an amount due in this foreclosure action. The court noted this was Rossrock's fourth motion for the same relief, and the prior motions were denied for various reasons. Upon bringing this suit, the court directed Rossrock to explain an agreement between itself and property owner Cumberbatch that yielded a deed in lieu of foreclosure, its connection to RR REO LLC and how RR received the deed to the subject property. Rossrock explained it forgave the debt, released Cumberbatch from all liability, and gave him $25,000 in exchange for Cumberbatch giving all rights and interest for the property to Rossrock's affiliate, RR. Rossrock argued as the deed vested in RR it did not merge with the mortgage, thus Rossrock was still entitled to foreclose on the property. The court noted while Cumberbatch no longer had an interest in the property, nor indebtedness to Rossrock, under the terms of the agreement transferring Cumberbatch's interest to RR, it became a necessary party to the foreclosure action under Real Property Actions and Proceedings Law §1311. Therefore, as RR has not yet been made a party to the action, the instant motion was denied.
