Empire Community Development, LLC v. Blair

Background

Empire Community Development, LLC brought a foreclosure action concerning the mortgage and note secured by property commonly known as 956 East 223rd Street, Bronx, New York 10466. The court entered certificates of default against the defendants after they failed to appear at the show-cause hearing on July 10, 2024.

The court stated that a default means a defendant admits the complaint’s properly stated factual allegations, but the court still must determine whether those allegations establish legal liability. The court found that it had subject-matter jurisdiction under 28 U.S.C. § 1332 and personal jurisdiction under New York Civil Practice Law and Rules § 301. It also found that Empire Community Development had submitted sufficient documents and affirmations showing that Danville Blair and Tracey Blair failed to comply with the mortgage and note and owed money under New York’s foreclosure statute. The complaint sufficiently alleged nominal liability for the New York City Environmental Control Board and New York City Parking Violations Bureau.

Ruling

The court granted default judgment on Empire Community Development’s claim for foreclosure and sale. It determined that $193,504.05, including costs and interest through April 15, 2024, was due under the note and mortgage.

The judgment directs that the property be sold as one parcel at a public auction under the supervision of Mark L. McKew, Esq., who was appointed as the referee. The judgment specifies how the sale proceeds must be used, including payment of the referee’s $750 fee, sale and advertising expenses, the amount due to Empire Community Development, and certain taxes, assessments, water charges, sewer charges, interest, and penalties. Any surplus must be deposited for withdrawal only by court order.

If the sale proceeds are insufficient, the referee must report the deficiency. Empire Community Development may seek a deficiency judgment only through a motion made under New York Real Property Actions and Proceedings Law § 1371 and only if the court determines and awards one. The judgment also permits the purchaser to take possession upon production of the referee’s deed and bars the defendants and persons claiming under them after the notice of pendency from asserting rights, claims, liens, or an equity of redemption in the property. Judge Lorna Schofield issued the judgment.