Wells Fargo Bank, N.A. v. Wilkinson, New Century Mortgage Corp., et. al.
N/AOUTCOME: Priority Position won for New Century Mortgage
In Wells Fargo Bank, N.A. v. Wilkinson, New Century Mortgage Corp., et. al., Jackie Halpern Weinstein won a decision and order declaring that New Century's mortgage takes priority over a prior recorded ... mortgage from Wells Fargo, even though the Wells Fargo mortgage was first in time to record. In 2006, when New Century took a mortgage on a property in Brooklyn, it appeared to be a first priority lien. After the borrower defaulted on his payments, however, the commencement of a foreclosure action revealed that, less than three weeks before New Century recorded its mortgage, Wells Fargo first recorded a mortgage on the same premises. The title company immediately hired Adam Leitman Bailey, P.C. to fight on behalf of New Century for the first priority position on the premises. Even though the Wells Fargo mortgage was recorded first, it contained an unstamped, out-of-state notary acknowledgment that was not authenticated by a certificate, as is required in NY. Jackie Halpern Weinstein successfully argued that a mortgage containing a defective acknowledgment, even if recorded first, does not impart record notice upon subsequent lienors under the laws of the State of New York. Even though most Judges have been reluctant to deprive a lienor of its priority position based on a technicality such as an improper notarization, Jackie was able to counter the trend and facilitate the win.
