On April 16, 2025, the Second Department issued a decision in Nechadim Corp. v. 500 Putnam St. Realty, LLC, 2025 NY Slip Op. 02214, holding that a party that sold its interest in property lacked standing to defend a foreclosure action relating to it, explaining:
A party seeking to vacate a default in appearing or answering pursuant to CPLR 5015(a)(1), and thereupon to serve a late answer, must demonstrate a reasonable excuse for the default and a potentially meritorious defense to the action. While the defendant asserts that it had a potentially meritorious statute of limitations defense to the action, in July 2012, the defendant transferred its entire interest in the subject property, and the plaintiff, in its opposition to the defendant’s motion, expressly waived any claim for a deficiency judgment against the defendant. Under these circumstances, the defendant no longer had any interest in the subject property and lacked standing to defend the action.
(Internal quotations and citations omitted).