Accredited Home Lenders v. Walker
Justice Thomas Whelan
Accredited Home Lenders moved for partial summary judgment on its cause of action for equitable subrogration of its mortgage lien to two prior mortgages in this action to foreclose on the subject property. Wesley Walker obtain a loan from Accredited and executed a note secured by a mortgage recorded in the Suffolk County Clerk's Office. The loan proceeds were used to satisfy two existing mortgages on the property. Walker's wife, Judith, obtained a money judgment against him in a divorce action. Walker allegedly defaulted on his loan payments and Accredited began foreclosure, also seeking equitable subrogation. Accredited claimed it relied on the results of a title search that there were no other outstanding liens or judgments against him. The court stated the record adduced on the motion sufficiently established the absence of any actual notice on Accredited's part of Judith's money judgment at the time of the closing of Accredited's loan to Walker. The record also showed the loan proceeds satisfied two mortgage liens that were senior to Judith's judgment. Thus, Accredited's motion was granted.