The Appellate Division of the Supreme Court of the State of New York has affirmed a ruling that allows the Bank of New York Mellon to foreclose on a property owned by Roger DeLoney. This decision, made on October 14, 2026, affects DeLoney, who has been in a legal battle regarding his mortgage since 2013. The ruling is significant as it confirms the bank's right to proceed with the sale of the property, which has been the subject of ongoing litigation.
The case began when the Bank of New York Mellon filed a foreclosure action against DeLoney in 2013, seeking to recover the amount owed on a mortgage for a property located in Brooklyn. DeLoney responded to the complaint, but the legal proceedings have been complicated by various motions and appeals over the years. The dispute has centered around whether DeLoney had the right to defend himself in the foreclosure action after he transferred his property to an LLC in 2016.
The case reached the Appellate Division after several rulings in the Supreme Court. Initially, the court granted summary judgment in favor of the bank, allowing them to proceed with foreclosure. However, DeLoney's appeal led to a reversal of that decision in 2021, which temporarily halted the foreclosure process. The bank then filed a new motion in December 2022, seeking to revive the foreclosure action, which ultimately led to the recent ruling.
In its decision, the Appellate Division upheld the Supreme Court's order and judgment of foreclosure and sale, stating, "the order and judgment of foreclosure and sale is affirmed, with costs." The judges who ruled on the case included Angela G. Iannacci, Paul Wooten, Lourdes M. Ventura, and Lisa S. Ottley. The court found that DeLoney did have standing to defend the action, but his arguments against the foreclosure were not sufficient to overturn the previous rulings.
The court noted that while DeLoney conveyed his interest in the property to an LLC after the foreclosure action began, the bank still sought a deficiency judgment against him. This means that even after the property is sold, DeLoney could still owe money to the bank if the sale does not cover the full amount of the mortgage debt. The judges emphasized that DeLoney's challenges to the court's earlier orders were improperly raised for the first time on appeal, which contributed to the court's decision to deny his motions.
This ruling has significant implications for DeLoney and others facing similar foreclosure situations. It reinforces the authority of banks to pursue foreclosure actions and seek deficiency judgments against borrowers, even if they have transferred their property to another entity. The decision also highlights the importance of timely and properly raised legal defenses in foreclosure cases.
Going forward, this ruling confirms that the Bank of New York Mellon can proceed with the sale of DeLoney's property. It serves as a reminder for homeowners facing foreclosure to understand their rights and the potential consequences of their actions regarding property ownership and mortgage obligations. The outcome of this case may influence similar foreclosure cases in New York, as it clarifies the legal standing of defendants who have transferred their property during ongoing litigation.
Details were not available in the court filing regarding whether DeLoney plans to appeal this decision or if there are any related cases pending. However, the ruling sets a precedent that may affect future foreclosure actions in New York.