The defendant lender brought a motion for summary judgment dismissing a claim by a third mortgagee arising from a power of sale of residential property.
The plaintiff alleged the sale was improvident and challenged the defendant’s ability to add amounts paid to discharge a prior mortgage to its own mortgage debt.
The court held the sale price fell within the range of professional appraisals and did not demonstrate bad faith or fraud.
The court further held that the defendant was contractually and equitably entitled to add the payout of the prior mortgage to its own mortgage and recover that amount in priority to the plaintiff.
Finding the matter suitable for determination on a documentary record, the court granted summary judgment and dismissed the action.
