Justice Jack Battaglia
A mortgage foreclosure action was brought in 2009 against mortgagors regarding a mortgaged property in Brooklyn. The action was based on a note and a mortgage, each dated Dec. 28, 2006, given to HSBC Mortgage Corporation (USA). A copy of the note and a copy of the first page of the mortgage were attached to Special Referee Goldstein’s report, as well as a copy of an Assignment of Mortgage Electronic Registration, Inc. as nominee for HSBC Mortgage Corporation (USA), as assignor, and plaintiff as assignee. A Special Referee, who referred the matter to the instant court “for a bad faith hearing,” concluded plaintiff assignor “has failed to negotiate in good faith and seemingly lacks standing to foreclose.” The court confirmed the report to the extent that plaintiff is determined to have failed to negotiate in good faith as required by CPLR §3408. While the court assumed that the plaintiff proceeded in good faith to obtain a “waiver” in the action of any prohibition or restriction that would otherwise apply to it, plaintiff failed in its refusal to accept the waiver when it was clearly offered. The court concluded that plaintiff’s refusal to proceed in itself violated its obligation to negotiate in good faith pursuant to CPLR §3408(f).
