Practice point: In order to commence a foreclosure action, a plaintiff must have a legal or equitable interest in the mortgage. A plaintiff has standing where it is the holder or assignee of both the subject mortgage and of the underlying note at the time the action is commenced.
Student note: An assignment of a mortgage without assignment of the underlying note or bond is a nullity, and no interest is acquired by it.
Case: HSBC Bank USA v. Hernandez, NY Slip Op 01434 (2d Dept. 2012).
Here is the decision.
Tomorrow’s issue: Denial of a motion for summary judgment.
