Justice Elizabeth H. Emerson


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Bank was previously granted a judgment of foreclosure and sale, and awarded $75,000 attorney fees for two parcels at issue. Defendant, after entry of judgment, moved for reargument, which was granted, but the court adhered to its prior decision on attorney fees. Defendant appealed and sought to stay the sale. The Appellate Division reversed and remitted the matter for a new decision on the attorney fees issue. Bank informed defendant it was willing to waive attorney fees, and defendant responded with a settlement offer, which bank declined. Defendant moved to toll accrual of interest from the date of the foreclosure judgment until entry of an amended judgment, arguing delays were attributable to bank and its bad faith was evidenced by refusal to accept settlement offers. The court disagreed stating once a mortgagor defaulted on loan payments, mortgagee was not required to accept anything less than full repayment as demanded­—the best offer was substantially less than defendant owed. Hence, bank was not required to offer defendant a settlement, and its failure to accept the offer could not be interpreted as lacking good faith. Thus, defendant failed to establish bank’s action was so egregious to merit imposition of sanctions by limiting the interest award, denying he motion.