Bank of N.Y. Mellon v. Garcon

Bank of N.Y. Mellon v Garcon 2025 NY Slip Op 32201(U) June 23, 2025 Supreme Court, Rockland County Docket Number: Index No. 033501/2015 Judge: David Fried Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service.

This opinion is uncorrected and not selected for official publication.

INDEX NO. 033501/2015 NYSCEF DOC. NO. 109 RECEIVED NYSCEF: 06/23/2025

'I'o commence the statutory ume period for appeals as of tight (CPLR \5s13 [al), vou are advised to serve a copy of this Order, with notice of entry, upon all patties.

SUPREN{E COURT OF THE STATE, OF NEW YORK COLTNTY OF ROCKLAND \ THE, BANK OF NEW YOR}' MELLON, AS TRUSI'EE, FOR CIOSABS, INC. ASSET.BACKED CERTIFICAI'ES, SERIES 2OO3-BC-5, DECISION & ORDER Plaintrff, Index No. 033501 /2015 N{otion Serluence No. 3 -agarnst-

JOCEL\NE GARCON A/K/A JOCEL\'}JE G.

CANT.,WE ; CITIBANK (SOUTH DAKOTA) N.A.; CHASE BANK GISA) N.A.; MARIE GARCON, l)cfendants. x HON. DA\.ID FRIED, AJ.S.C.

The papers filed electtonically via NYSCEF numbered 89 through and rncludrng 108 ('Motion") were read and consideted herein. Upon such teading and considetation, the lMouon is disposed as foll<>ws:

BACKGROUND This action commenced on July 28, 2015 to foreclose on a lr{ottgage encumbering the parcel of real properqr located at 44 Dematest r\venue, Village of West Haverstraw, County of Rockland, State of New York 10993 (Section 20.19, Block 8, Lot 94) ("Subiect Property") and was drsposed by the entry ofaJudgment of Foteclosure and Sale onJanuary 29,2019 (Judgment"). The Judgment directed that "if the Refcree does not conduct the sale within 90 days of the date of the iudgment, in accotdance with CPLR 2004, the time 6xed by RPAPL S1351(1) is extended for the Referee to conduct the sale as soon as reasonably practicable" (I{YSCEI' Doc. No. 75,pg.4).

The foreclosure sale originally scheduled for April 25,2019 in accordance wrth the Judgment could not proceed due to an automatic stay arising from Defendant Jocelyne Gatcon's ('Defendant") frling ofa Chapter 13 bankruptcy peution on,\pril 24,2019. Although the Bankruptcy Court lifted the stay on June 25, 2020 upon PlaintifPs motion, Plainnff was unable to conduct a foreclosure sale until

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January 15, 2022 dwe to the issuance of a statewide commercial eviction and foteclosure motatorium by Executive Order of the New York State Govemor and its subsequent extension by several other Execudve Orders and the enactment of the COVID-l9 Emetgency Eviction and Foreclosure Prevention Act. Upon the expiration ofthe foreclosure moratorium, Plaintiff scheduled a foreclosure sale for May 26,2022.

On May 18,2022, Defendant, seeking to prevent the foreclosure sale from proceeding, contacted Plaintiffs loan scrvicer, Nationstar Mortgage LLC d/b/a NIr. Cooper ("Mr. Cooper"), by telephonc and purports to have made an informal request for the arrangement of a short payoff or short sale without supplying Plaintiff witl a written application or supporting documentadon. In order to teview Defendant's tequest and avoid dual trackrng, Mr. Cooper canceled the foteclosure sale scheduled for May 26, 2022. On June 8, 2022, Plilntrff informed Defendant that it could not ptoceed with a short payoffas the ptoposed payofffunds were rn the name of Defendant's children rather than Defendant.

Plarntrff thereafter scheduled a new foreclosure sale for October 13,2022, wlttch was never conducted due to the frhng of yet another bankruptcy petition by Defendant on October 12,2022, resulting rn an automadc stay of the ptoceeding up until January 26, 2023. The parties subsequendy engaged in loss mitigation rn the Banlruptcy Court for two years, whrch yielded no setdement and prompted dismssal of the second Bankruptcy petition on January 17 ,2025. Plaintiff thereafter scheduled a new foteclosure sale for May 13,2025.

Defendant now brings tlus Motion by way of Order to Show Cause for an Otder (i) enjoining the May 13,2025 foteclosue sale until Plarntiff obtarns an Order purcuant to CPLR $2004 extending its nme to conduct a foreclosute sale in accordance with the Judgment and (ii) awarding Defendant attomeys fees fot the prepatation of the within Motion due to Plaintiffs frivolous conduct in not obtaining an Ordet extending its time to comply wrth theJudgment. The Court srgned Defendant's proposed Order to Show Cause on Apd 30, 2025. By supulation of the parties so ordered by the Coutt (NIYSCEF Document No. 103), the Motron retutn date was adjourned to June 5, 2025 and the foteclosure sale was adjoumed to June 12, 2025. Due to a clerical erot, the Court was not informed that the Mouon was fully submitted on June 5, 2025 and thus could not render a decision prior to the June 12, 2025 foreclosure sale. Thus, on June 11, 2025, rhe Court stayed the foreclosure sale pending the issuance of this Decision & Otder. Plarntiff opposes the IMotion.

PARTIES'CONTENTIONS In support of her Motion, Defendant contends that Plaintiff has not complied with this Court's Judgment in that it has not conducted the foteclosure sale of the subject properq' withh ninety days of entry thereof or as soon as reasonably practicable. Defendant concedes that Plaintiff was unable to conduct a foreclosute sale between the entry of the Judgment andJanuary 15,2022 because of the imposition of Defendant's first bankruptcy frLng and the COVID-19 foreclosure moratorium.

Defendant takes issue with Mt. Cooper's cancellation ofthe lv{ay 26,2022 foreclosute sale, which she contends was not necessitated by the law but rather unilatcrally undettaken bv Plaintiff upon

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Defendant's informal request for a short payoff Defendant asserts t}lat 12 CFR S1024.41 did not necessitate a loss mrtigation hold and cancellation of the May 26, 2022 foteclosure sale as a result of Defendant's informal request for a short payoff for the following reasons: first, under 12 CFR S1024.41(c)(1) a loss miugation hold is not required where the borrower's loss mrtigatron application is incomplete or submitted wrtlun thirty-seven days before the scheduled foteclosute sale; and second, the loan servicer is not requted to evaluate a request for loss mrngation where it previously evaluated an application but the borrower remained delhquent between the submission of the previous applicauon and the new application, as Defcndant alleges is the case hetein. In effect, Defendant contends, because Plaintiff was under no legal obligation to evaluate Defendant's informal tequest for a short payoff, its cancelation of the May 26, 2022 foreclosure sale under the pretense of a loss mitrgauon hold was unjustified, and Plaintiff drd not "conduct the sale as soon as reasonably practicable" as provided for by the Judgment.

Defendant further contends that Plaintiff engaged in frivolous conduct under 22 NYCRR $ 130.1.1 by failing to cancel theMay 13,2025 foreclosute sale after being informed b1' Defendant that the previous foteclosute sale scheduled for May 26,2022 was the date most reasonably practicable to conduct the sale. Defendant maintains that Plainuff was adequately rnformed of the mcridess nature of proceeding with the May 13, 2025 foreclosue sale without obtaining an extension of time after Defendant explained same in her lefter to the Court (ITIYSCEF Documcnt No. 87), at two Court appearances, and in an email to Plaintiffs counsel. Nevertheless, Defendant argues, Plaintrff rnsisted on proceeding with the May 13,2025 foreclosutc sale, which occasioned the Frling of the instant N{otron. Defendant thus seeks an award of attomey's fees incutred in the &afting of the instant N'Iodon.

In opposition to Defendant's Motion, Plaintiff f,trstly contends tlat Defendant farled to trmely serve moving papers on Plarntiffs attorney via email as d-tected of it by the Order to Show Cause, which it contends is a jurisdictional defect requiring demal of the N{otion.

Plainuff does not addtess whether the scheduLing of the Mzy 13,2025 foreclosute sale conforms with the directives of this Court's Judgment. Rather, Plaintiff contends that Defendant maintains an untenable position by contesting the ptopriety of the May 13,2025 foreclosure sale while haung prer.rously delayed this over nine-yeat-old fotecloswe action at cvery turn. Plarntiff also submits that public pohcy mrhtates agarnst any futther extension of time, as plaintiffs to foreclosure actions incur expenses throughout the pendency of the action while defendants-borrowets live rent free and oftentimes collect tent thtoughout the pendency of the actron, thereby stymieing defendants' incentive to setde, prolongrng litrgation, congesting coutt dockets, and adversely rmpactrng the ab ity of ptospective borowers to secure loans.

With regard to the branch of Defendant's N{otion fot sanctions against it, Plarntrff asserts that there is no Iegal l:asis flor t]re granting of such relief, reasoning as ft.rllows; F[st, that the commencement of this action and scheduling of the sale follorving cntry of the .fudgment wcre reasonably supported by

[* 3] 3 of 12 INDEX NO. 033501/2015 NYSCEF DOC. NO. 109 RECEIVED NYSCEF: 06/23/2025 legal precedent; second, that Plaintiff has not prosecuted this action with dre intent to prolong or delay resolution of this matter or to harass or mahciously injure Defendant; and third, that Plarntiff has not made any false material factual statements throughout this action. Plainnff also notes that it did not engage in dual tracking, that Defendant drd not apply for loss mrugauon, that the loan was not eLgible for a short sale, and that Defendant was not entitled to CFPB protections.

In reply, Defendant insists that she complied wrth the sen ice dttectives of this Court's Ordet to Show Cause and annexes copies of emails sent to Defendant's counsel, Christopher N{cKenna and Chdstal Printz. In tesponse to Plaintiffs opposition on the medts, Defendant avers that Plaintrff largety ignores the relevant factual issue hetein, that is, whethet Plainuffs cancellation of the May 26, 2022 foteclosure sale and scheduling of the foteclosure sale for Mzy 13, 2025 complied with this Court's Judgment. Defendant teiterates her position that her informal request for a short payoff did not justi$' cancellation of theMay 26,2022 foteclosure sale or otherwise constirute good cause for a delay in the proceedings.

DISCUSSION As an iniual matter, it beats noting that Defendant complied with the service directives contained within the court's ordet to Show cause and filed ptoof thereof in her reply papers (I.,IYSCEF Doc.

No. 106).

The facts herein are not disputed by the parues. RPAPL 51351(1) provides, in relevant pzrt, thzt z iudgment of sale "shall direct that the mortgaged premises ... be sold ... urithin ninery days of the date of the judgment." Howevet, "the coutt may extend the time Fxed by any statute, de or order fot dorng any act, upon such terms as may be just and upon good cause shown" (CPLR $2004). On Jamary 29,2019, the Coutt Q{arx, J.) directed Plaintiff to conduct a foreclosure sale within ninety days thereof and if not conducted witlln said timeframe, as soon as reasonably ptacticable (ra NYSCEF Doc. No. 75, pg. 4). Plaintiff did not conduct a foteclosure sale within ninety days of January 29,2079 zr,d has not obtained an order gtanting an extension of time to comply with the Judgment. Additionally, neither Plainnff not Defendant contest that it was not reasonably practicable for the foreclosute sale to be conducted between Apr124,2019 (the frling of Defendant's first Chapter Bankruptcy Petition) andJanuary 15,2022 ($e expitation of the statewide foreclosute mortatium).

As such, the issue before the Coutt is whether Plaintiffs cancelation of the subsequently scheduled foreclosue sale onMzy 26,2022 ostensibly under the ptetense of a loss mitigation hold was wartanted, and whether Mav 13,2025 was the next reasonably ptacticable date for conducting the foreclosure sale.

A determination of reasonableness, includrng the reasonableness of the delay in complying with a judgment of foreclosute and sale, generally tests within the sound disctetion of the Court (see e.g., Bank of ,4nerua r. Cord,214 AD3d 934,936 [2d Dept 2023]).

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Defendant did not tngget a loss mitigation hold under 12 CFR S1024.41(g) by making an informal request fot a short payoff or shott sale on May 18, 2022, some eight days before the May 26,2022 foreclosure sale; the appLcation vras neither completc, nor submitted mote than thirty-seven days before a foreclosure sale (rer 12 CFR S1024.41[g]). Thus, Plaintiff prematurely cancelled the NIay 26, 2022 foreclosure sale when it was under no legal obhgation to do so, and Plaintiff has not presented a reason fot why it was not reasonably pracucable for it to proceed with thc N{ay 26, 2022 sale in light of the absence of a loss mitigation hold. Accordrngly, because Plaintiff did not conduct the May 26, 2022 sale when it otherwise could havc, Plarntrff did not conduct tlre sale as soon as reasonably practicable as tequired by the Judgment.

Notwrthstandrng the fotegoing, the Coutt is receptive to PlainufPs contentions regardmg the costs tesulting from delays to foteclosure acdons. Accordrngly, considenng that the vast majotity of the six- year delay in conducting a foreclosure sale herein since the cntry ofJudgment was through no fault of the actions of Plaintiff or its loan sen'icer, but rather a r€sulr of bankruptcy stays, a statewide foteclosure moratorium, and setdement negotiations rn the Bankruptcy Court, and considering that Defendant was not ptejudiced by said delays, PlainnfPs time to conduct a foreclosure sale of the Subject Property is extended r d Jplflle pvrsu nt to CPLR \2004 by mnety days of tle date heteof (rer Nation ar Mortgage, Ll,C tt. Dunn,230 AD3d 1327,1329 [2d Dept 2024] [extending plarntiffs time to hold a foreclosure sale sua sponte under CPLR $2004 given that the delay was largely attributable to a pending appeal and the COVID-19 pandemrc, and the delay did not prejudice defendantl).

The bmnch of Defendant's Motion for an award of sanctions against Plaintiff pursuant to 22 NYCRR $130.1.1 fot engaging in ftivolous conduct by not canceLng the N{ay 13, 2025 foreclosure sale is denied.

Contrar) to Defendant's position, Plaintiff did not maintain a meridess position herein. To reitetate, the question before the Court herein was whether May 13,2025 was the next reasonably pract-icable date for conducting the foreclosure sale. As Defendant acknowledged rn her moving papers, "the determination of what is reasonable rests within the sound discretion of the tdal cout" QJYSCEF Doc. No. 90, fl17). Although the Coutt rested its determination of said issue, r pra, on the legal restraints to dual rackrng stemming from 12 CFR S1024.41, the Coutt was amenable to Plaintiff presenting a nonJegal excuse fot canceling the May 22, 2022 foreclosure sale, which it would have considered in its calculus had Plaintiff presented such an excuse. In other words, whether May 13, 2025 was the next teasonably practrcable date for conducting the foreclosure sale was not a purely legal question, and Plaint-ifPs refusal to cancel the Mry 13,2025 foteclosure sale at Defendant's tequest rvas not completely without merit in larv. Therefore, Plaintiff did not engage in frivolous conduct.

In light of thc fotegoing, it is hereby ORDERED, that DefendantJocelyne Gatcon A/K/A Jocelyne G. Cantave's Motion is GRANTED to the extent provided hetein; and it is further ORDERED, ADJUDGED AND DECREED, that pursuant to \1351(1) of thc Rcal I)ropert)'

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Actions and Proceedings Law, the Subject Propetry- shall be sold under the direction of the referee hereinbefore appornted, in one parcel, at pubhc auction, urthrn 90 days of the date of tlus Order, and said Referee shall grve public notice of the time and place of sale in accordance with RPAPL 5231 in TheJoumal News at the Rockland County Courthouse, located at 1 South Main Street, New City, NY 10956; provided, however, that:

(1) Plainuff / the Referee shall schedule and conduct such sale in strict compliance with the Auction Rules fot the Ninth Judicial District attached hereto as Schedule Ao any superseding judicial ot execudve otdet genetally tegulaung the time, place ot manner of foreclosure auctions, and all public health rules and regulations then rn effect;

(2) The 90-day sale deadline heteunder shall be deemed superseded: (a) to the extent of any iudicial or executive otder that becomes effective hereafter during such 90-day sale period that extends tlre sale deadline; atdfor (b) if the Referee attests that it would be rmpracucable to conduct the sale wlthin 90 days hereof in compliance wrth the Aucnon Rules, rn which case the Referee may conduct the sale wrthin 150 days hereof without futher Order of this Coutt pursuant to CPLR $2004 or otherwise, and any such sale shall be deemed umely fot purposes heteof; and it is further

ORDERED' ADJUDGED AND DECREED, that this mattet is scheduled for a status conference on October 17. 2025 at 9:15AM. 1'he purpose of this conference is to determine whether the foreclosure sale has occurted as ordeted, t}re outcome of such sale and to make such furthet otders as the Court deems necessary. Appearances by the parues and appornted Referec are tequ:red UNLESS: (1) a completed Foreclosute Action Surplus N{onies I'-orm has been uploaded and received by the undetsrgned one week prior to tlrrs date or (2) the Refetee notiFres the Court in writing one week priot to th.is date that the sale is not going to occur prior to this datc and requests a new date based upon when he/she believes the sale will occur; and it is further

ORDERED, ADJUDGED AND DECREED, to the extent not addressed herein, all other portions ofthis Court's Order Confirmrng the Referec Report andJudgment of Foreclosure and Sale enteted in this action, and schedules attached thereto, remain rn full force and effcct; and it is further

ORDERED, ADJUDGED AND DECREED, that within 10 days of the date of entry heteof, Plaintiff shall senre a copy of this Order, with notice of entrl', upon the ownet of the equity of redemption, any tenants named in the action, the Refetee appointed herein, and any other pary enrided to notice, and Frle with the Court a suitable afFtmation of senice.

ISIGNATURE PAGE FOU.ONTS l

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'l hc frrregoing consdtutes the Dccision & Ordcr of this Court

Dated: New City, New York L,N R: Jtne 23,2025

HON. DAVrD FRIED, A.J.S.C. S]'A]'ti Or' NIr!(i YORI{ (JOLIN'IY OI' RO(]KLAND

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S cF-{e}L{Le- A

NEW AUCTION RULES FOR THE NINTH JUDICIAL DISTRIGT EFFECTIVE Julv 1. 2024 GENERAL FORECLOSURES 1. The foreclosure rules currently in place will remain in effect. Please note the following rules with respect to auctions. These new auction rules shall be attached to all Judgments of Foreclosure and Sale issued by the court.

NOTICE TO BIDDERS 2. Auctions will be conducted in the following locations: Dutchess Countv: Auctions will be held in the rear lo bby of the Dutchess County Courthouse. Foreclosure paperwork may be completed in the rear lobbywhen the sale is mmpleted.

Oranqe Countu: Auctions will be held in the lobby area of Floor 2, Div. 3 of the Orange County Courthouse. Room 3212 is available if additional space is needed.

Foreclosure papenrvork may be completed in Conference Room 3209 when the sale is completed.

Putnam Countv: Auctions will take place in the jury assembly room located in the Putnam County Courthouse. Foreclosure paperwork may be completed in the jury lounge room following the sale.

Rockland County: Auctions will take place in the Rockland County Courthouse in the landing above the vestibule between Courtrooms One and Two. Pursuant to Administrative Order 54124, remote bidding has been authorized for Rockland County. However, all auctions, even remote-eligible auctions, will still take place in-person, at the location designated herein, and will still be conducted and supervised by the Referee. ln a remote bidding eligible auction, where remote bidding has been requested by plaintiff in the proposed Judgment of Foreclosure and Sa|e-REMOTE BIDDING [See template at hftos:/Aruww.nvcourts.oov/forms/foreclosure/pdfs/JFS- with-Remote-Biddino.docxl and authorized by the court in the Judgment of Foreclosure and Sale, plaintiff may retain the services of a remote bidding technology provider for those properties scheduled to be auctioned on or after July 1,2024.

Remote bidding will be available for properties where the foreclosing party has engaged such a remote bidding technology provider to provide marketing and auction services. ln those cases where a remote bidding provider has been retained, a representative thereof will appear at the courthouse for the auction and shall be permitted to use an electronic tablet to collect, verify and relay bids I

[* 8] 8 of 12 INDEX NO. 033501/2015 NYSCEF DOC. NO. 109 RECEIVED NYSCEF: 06/23/2025 in real time during the auction.

Vvhere a plaintiff seeks to retain a remote bidding technology provider, the proposed Judgment of Foreclosure and Sale shall make the necessary references to remote bidding, as set forth more fully in the UCS' Judgment of Foreclosure and Sale for Remote Bidding template, [which can be found at https:/Amrw.nvcourts.oovlformslforeclosure/pdfs/JFS-with-Remote-Biddinq.docxl or as otherwise ordered by the court. No remote-bidding eligible auction may take place unless authorized by the Judgment of Foreclosure and Sale.

Once the sale concludes, the successful bidder and Referee may gather in Conference Room 206 on the second floor next to the Chief Clerk's Office to complete the foreclosure papenvork. lf the highest bid comes from a remote bidder, the remote bidding provider shall facilitate the winning bidder's execution of all required documentation.

Westchester Countv: Auctions will be held in the lobby area located on the first floor of the Courthouse. A courtroom will be made available if additional space is needed. Foreclosure paperuvo* may be completed in the same location following the sale.

3. There shall be a maximum of five auctions daily: three (3) in the morning and two (2) in the afternoon. The first shall commence at 9:30 am, the second at 10:30am, the third at 11:30am, the fourth at 2:30pm and the fifth at 3:30pm. (The number of auctions per day and the time of day may differ by County).

4. lt is the responsibility of the bidder to acquaint himself/herself with the property, any encumbrances thereon, and the Terms of the Sale before placing a bid and to be certain that adequate funds are available to make good the bid.

5. All bidders must have proof of identification and will be required to state their names and addresses on the record at the time the bid is made.

6. A successful bidder must have in his/her possession at the time of the bid the full 10% of the sum bid, in cash or certified bank check to be made payable to the Referee.

ln Rockland County only, if the highest bid comes from a remote bidder in a remote-eligible auction, the Referee shall defer collection of a deposit as long as the remote bidding provider provides proof of sufficient funds thereof. This proof of funds may be in the form of a winning remote bidder's escrow account statement as of the date of the auction. The deposit MUST then be transferred into the Referee's trust account within one (1) business day of the conclusion of the auction. The Referee shall make available their wire transfer information to the remote bidding provider for this purpose.

7. No auction will be deemed final until the full 10% deposit has been paid to the z

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Referee and the Terms of Sale Documents have been signed, which must be done in the courthouse immediately following the auction, except as set forth above for a winning remote bidder in a remote-eligible auction.

8. Afier the auction is completed, the Referee and successful bidder, if needed, shall be allowed to use designated court space to complete the necessary paperwork.

9. lf a successful bidder fails to immediately pay the deposit or in the event of a winning remote bidder in a remote-eligible auction, within one (1) business day of the conclusion of the auction, and sign the Terms of Sale documents, the property shall be retumed to auction immediately.

NOTICE TO REFEREES l0.Auctions shall be scheduled by appointment only utilizing the following applicable email address: Dutchess Countv: DutchessAuctions @NYCourts.gov Oranoe Countv: OrangeAuctions@NYCourts-gov Putnam Countv: [email protected] Rockland Countv: RocklandAuction [email protected] lf remote bidding is authorized by the court, when seeking to schedule a remote- bidding eligible auc{ion (via email to [email protected]), the Referee and/or plaintiffs representative must noti! the court of their intention to retain a remote bidding technology provider.

Westchester Countu: [email protected] 11.The Referee shall not schedule any foreclosure sale without prior approval from the Clerk's Office. All auction sales shall be scheduled through the clerk's ofiice.

The auction calendar shall be published on OCA he Court's website. The Clerk's Office shall be colely responsible for scheduling, and the Referee shall coordinate the date and time of the auction with the Clerk's Ofltce. lf the auction is canceled for whatever neason, the Referee shall promptly notify the Clerk's Office.

12.The Referee and all interested parties, including a representative from a remote bidding provider in a remote-eligible auction in Rockland County, must be present at the designated auction location indicated in the Order of the Court on the published date promptly at the scheduled time. At the completion of the auction, the Referee shall direct all attendees at that auction to vacate the auction location promptly upon confirmation of the sale.

13.The Referee shall conspicuously post the Terms of Sale, including any known

[* 10] 10 of 12 INDEX NO. 033501/2015 NYSCEF DOC. NO. 109 RECEIVED NYSCEF: 06/23/2025 encumbrances, in a designated area of the auction location at least 30 minutes before the auction commences.

14.The Referee shall accept either (1)cash, or (2) certified bank check made payable to the Referee. ln the case of a remote-eligible auction where the winning bidder is a remote bidder, a deposit MUST be transfened into the Referee's lrust account within one (1) business day of the conclusion of the auction.

15.At the conclusion of the auction, the Referee shall notify the Clerk's Office of the outcome of the sale.

SURPLUS FUNDS 16. lf there is a potential for Surplus Funds, the Referee shall notify the clerk who shall enter the following information into UCMS (Foreclosure Screen): the sales price, amount awarded in the final Judgment of Foreclosure, and upset price.

17.\Men the sales price exceeds the greater of the judgment amount or upset price, the clerk will provide the Referee conducting the sale a Surplus Money Form to be completed.

18.The form shall include the following information: a case caption, name, address and telephone number of the Referee, the plaintiffs representative and the purchaser, a judgment amount, and the upset and sale price. The form must be signed by the Referee, plaintiffs representative and purchaser of the foreclosed property.

19.The Referee will complete the form at the auction, and deliver the signed form to the court clerk, who will subsequently provide it to the County Clerk.

20.All cases with a potential for Surplus Funds will be calendared for a control date before the IAS Judge or his/her designee, no later than six months after the auction (this is a non-appearance part). On the control date, the Clerk will consult the County Clerk Minutes. lf Surplus Funds have been deposited or the Report of Sale indicates a deficiency, the appearance will be appropriately marked. ln the event that no Report of Sale has been filed, but there are motions pending, the Clerk will adjourn the case to a date beyond the motion return date in the IAS part. lf a Report of Sale has not been filed and no motions are pending, the case will be adjourned to the IAS Judge for further proceedings, as necessary, and the Referee shall be notified.

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9th J u dic ia I Dl suict - Fo rec los urs-Auctlon Ptan R€ mots-Eiddi n8 Add rlum EOR ROCKII}{D COUNTY ONLY a Pu6usnt to Administretive order 54/24, remote bidding has be6n authorized tor Rocktand County. However, all suctions, ev€n rsmote-etigibte auctiong, witt stitl take pt6cs ln-person, at the tocation designated herein, and wilt stilt be conducted and suporvls€d by ths Rorsree. a Ptaintiff may retain the seNices of a remote bidding technotogy providet lor those properties scheduted to be auctioned on or 6fter 5/20/24. a Rsmote biddinS witt be avaitabte tor properties where tha forectosing party has 8nga8€d such a remote bidding tschnoloSy providet to prol/ide markoting and auction services. ln those cases where a rsmote bidding ptovid€r has b€€n retained, a representative lhereof witt appear at the counhouse for the auction and Bhatt be permitted to uso an eleclronic tablBt to cotlect, verity, and retay bids in reat tlme during ths auction. a Where a ptaintiff seeks to retain a remote bidding technotogy provider, the proposed iudgment ot torectosure and sale shatt make the necesssry referencss to remote bidding as set rorth mors futty in the ucs' JudSment of Forectosure atrd Sate Temptate tor Remote Bidding or as otherwise ordered by the court. No remote- bidding eUglbte auction may take ptace unless authorized by the Judgment ot Foreclosuro and Sale. a l, remote bicldinE is authorized by the court, when seeking to sch€dule a remote' bidding etiSibte auction (via emait to [email protected]), the Releree ond/or ptaintitf's representative must notiry the court ot their inlention to retain a remote biddlng tachnotogy provider. a Atter a remote-bidding eti8ibte auction has been compteted, if the hiShest bid is from a remote bidder, the Referee shatt deter cottection of a deposit 3o long as the remote bidding provider provides prool ot sutlicient tunds thereof. This proof of lunds can be in the form ol a winning remote bidder's escrow account statement Of the dAte Of the auction. The deposit MUST then be transferred into the Refero€'3 trust eccount within one (l ) business day of the conclusion ot the auction. The Reteree shatt make availabte their wire transfer information lo the romote blddinE provider tor this purpose. a After an auction has been compteted, if the hiShest bid is from a remote bidder, the romote bidding provider shatt assist in tacititaringthe winning biddefs execution of att requirBd documentation.

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