1:23-cv-09385•Allison Lending, LLC v. NLL Properties Incorporated et al
Allison Lending, LLC v. NLL Properties Incorporated et al
1:23-cv-09385Nyed28 de out. de 2025
Texto completo
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------X ALLISON LENDING, LLC, Plaintiff, REPORT AND RECOMMENDATION -against- 23 CV 9385 (PKC)(RML) NLL PROPERTIES INCORPORATED, et al., Defendants. ---------------------------------------------------------X LEVY, United States Magistrate Judge: By order dated December 27, 2024, the Honorable Pamela K. Chen, United States District Judge, referred plaintiff’s motion for default judgment of foreclosure and sale to me for report and recommendation. For the reasons stated below, I respectfully recommend that plaintiff’s motion be granted. B ACKGROUND AND F ACTS Plaintiff Allison Lending, LLC (“plaintiff”), a Delaware limited liability company with a principal place of business in Florida, commenced this commercial mortgage foreclosure action on December 20, 2023. (See Complaint, dated Dec. 20, 2023 (“Compl.”), Dkt. No. 1.) All defendants were properly served with the summons and complaint. (See Affidavit of Service of Calvin H. Chen, sworn to Jan. 18, 2024, Dkt. No. 10; Affidavits of Service of Laurance Knox, sworn to Feb. 14, 2024, Dkt. Nos. 7, 8; Declaration of Danielle P. Light, Esq., dated Apr. 10, 2024 (“Light Decl.”), Dkt. No. 17-3, Ex. 2.) To date, no defendant has answered or moved with Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 1 of 13 PageID #: <pageID>
2 respect to the complaint. On March 18, 2024, the Clerk of the Court issued a Certificate of Default against all defendants.1 (See Certificate of Default, dated Mar. 18, 2024, Dkt. No. 15.) Plaintiff seeks to foreclose on the mortgage encumbering the real property at 109-09 211th Street in Queens, New York and identified on the Queens County Tax Map as Block 10922 Lot: 72 in the County of Queens and State of New York (the “Property”). (Compl. ¶ 1.) On August 16, 2022, defendant NLL Properties Incorporated (“NLL” or “Borrower”), a New York corporation, executed and delivered to National Bank of New York City (the “Lender”) a promissory note (the “Note”) evidencing a commercial loan in the principal amount of $255,000 (the “Loan”). (See id. ¶¶ 3, 10, Ex. B; see also Affidavit of John Ramer, sworn to Apr. 4, 2024 (“Ramer Aff.”), Dkt. No. 17-2, ¶ 6, Ex. A.) To secure the indebtedness under the Note, Borrower duly executed, acknowledged, and delivered a mortgage to Lender (the “Mortgage”) that encumbers the Property as collateral security for the Note. (Compl. ¶ 11, Ex. C.) The mortgage was duly recorded in the Office of the City Register of the City of New York, Queens County, on November 30, 2016 under City Register File No. 2022000338912. (Id. ¶ 12.) On August 16, 2022, defendants Neville Lee and Chandra Lee (the “Guarantors”), both New York citizens, each executed a Guaranty of Payment. (See id. ¶ 13, Ex. D.) On the same date, the Guarantors also each signed a Confession of Judgment, admitting unconditional liability on the Loan. (Id. ¶ 14, Ex. E.) Plaintiff is the current owner of the Note by virtue of its physical possession of the wet-ink Note. (Id. ¶ 16; Ramer Aff. ¶ 7.) Plaintiff was assigned the mortgage by assignment 1 Plaintiff originally named the City of New York Department of Finance and the State of New York Department of Taxation and Finance as defendants. On January 2, 2025, plaintiff voluntarily dismissed those defendants. (See Notice of Dismissal, dated Jan. 2, 2025, Dkt. No. 22.) Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 2 of 13 PageID #: <pageID>
3 of mortgage dated November 21, 2023 and recorded in the Office of the City Register of the City of New York in City Register File No: 2023120800229002. (Compl. ¶ 16, Ex. F.) Therefore, plaintiff is the holder and owner of both the Note and Mortgage. (See id., Exs. B and C.) NLL defaulted under the terms of the Note and Mortgage by failing to pay the balance due when the Loan matured on August 31, 2023. (See id. ¶ 17, Exs. B and C; Ramer Aff. ¶ 12.) The Guarantors also defaulted under the terms of the Note by failing to pay the balance due when the Loan matured on August 31, 2023. (See Compl. ¶ 18, Ex. B; Ramer Aff. ¶ 13.) Under the terms and conditions of the Note and Mortgage, the unpaid principal balance is $255,000, plus interest, costs, fees and charges that apply pursuant to the Mortgage. (Compl. ¶ 19; Ramer Aff. ¶ 16, Ex. F.) DISCUSSION A. Subject Matter Jurisdiction “[B]efore deciding any case,” the court must “assure [itself] that the case is properly within [its] subject-matter jurisdiction.” Landau v. Eisenberg, 922 F.3d 495, 497 (2d Cir. 2019) (first alteration in original) (quoting United States v. Bond, 762 F.3d 255, 263 (2d Cir. 2014)). “A plaintiff asserting subject matter jurisdiction has the burden of proving by a preponderance of the evidence that it exists.” Makarova v. United States, 201 F.3d 110, 113 (2d Cir. 2000); see also Landau, 922 F.3d at 497. Here, plaintiff pleads subject matter jurisdiction pursuant to 28 U.S.C. § 1332 (Compl. ¶ 8), which grants a federal court diversity jurisdiction over, inter alia, civil actions “between . . . citizens of different States” where the matter in controversy exceeds the sum or value of $75,000. 28 U.S.C. § 1332(a). Plaintiff is a limited liability company, or LLC. For diversity purposes, an LLC “takes the citizenship of each of its members.” Bayerische Landesbank, N.Y. Branch v. Aladdin Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 3 of 13 PageID #: <pageID>
4 Cap. Mgmt. LLC, 692 F.3d 42, 48 (2d Cir. 2012) (citing Handelsman v. Bedford Vill. Assocs. Ltd. P’ship, 213 F.3d 48, 51-52 (2d Cir. 2000)). “Thus, if a party to a diversity action is an LLC, the party seeking to invoke the court’s diversity jurisdiction must identify both the LLC’s members and their citizenship.” 136-61 Roosevelt LLC v. Starbucks Corp., No. 21 CV 3560, 2021 WL 2779287, at *1 (E.D.N.Y. July 2, 2021). According to plaintiff’s Corporate Disclosure Statement, the sole member of Allison Lending, LLC is Yonel Devico, who is “a citizen of and domiciled in the State of Florida.” (Corporate Disclosure Statement, dated Dec. 20, 2023, Dkt. No. 2.) I therefore find that there is complete diversity of citizenship, and that this court has subject matter jurisdiction over this matter. B. Default Judgment Standard Federal Rule of Civil Procedure 55 imposes “a two-step process for obtaining a default judgment.” Priestley v. Headminder, Inc., 647 F.3d 497, 504 (2d Cir. 2011). First, if a defendant fails to appear, the plaintiff must obtain an entry of default by the Clerk of the Court. Id. (citing FED . R. C IV . P. 55(a)). Second, once default is entered against the non-responsive defendant, the plaintiff “must apply to the court for a default judgment.” FED . R. C IV . P. 55(b)(2). Plaintiff has satisfied these requirements. On consideration of a motion for default judgment, the court “is required to accept all of the [plaintiff’s] factual allegations as true and draw all reasonable inferences in its favor[.]” Finkel v. Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009) (citing Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61, 65 (2d Cir. 1981)). “Nevertheless, it remains for the court to consider whether the unchallenged facts constitute a legitimate cause of action, since a party in default does not admit conclusions of law.” Payamps v. M & M Convenience Deli & Grocery Corp., No. 16 CV 4895, Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 4 of 13 PageID #: <pageID>
5 2019 WL 8381264, at *5 (E.D.N.Y. Dec. 9, 2019) (citation omitted). If the complaint suffices to establish liability, the court must “conduct an inquiry . . . to ascertain the amount of damages with reasonable certainty.” Credit Lyonnais Sec. (USA), Inc. v. Alcantara, 183 F.3d 151, 155 (2d Cir. 1999). “The plaintiff bears the burden of presenting proof of damages, which may take the form of documentary evidence or detailed affidavits.” Sanchez v. Ms. Wine Shop Inc., 643 F. Supp. 3d 355, 365 (E.D.N.Y. 2022) (quoting Joe Hand Promotions, Inc. v. Benitez, No. 18 CV 6476, 2020 WL 5519200, at *3 (E.D.N.Y. Aug. 27, 2020), report and recommendation adopted, 2020 WL 5517240 (E.D.N.Y. Sept. 14, 2020)); see also Action S.A. v. Marc Rich & Co., 951 F.2d 504, 508 (2d Cir. 1991). Local Civil Rule 7.1 requires that all motions include a notice of motion, a memorandum of law, and supporting affidavits or exhibits containing any necessary factual information and portions of the record necessary for the court to decide the motion. Loc. Civ. R. 7.1. In addition, under Local Civil Rule 55.2, a party seeking a default judgment must file a proposed order and a certificate of service stating that all supporting documents “have been personally served on, or mailed to the last known residence (for an individual defendant) or business address (for other defendants) of, the party against whom default judgment is sought.” Loc. Civ. R. 55.2(a)(2)–(3). Plaintiff has complied with these procedural requirements. (See Notice of Motion, dated Apr. 10, 2024, Dkt. No. 17-1; Plaintiff’s Memorandum of Law, dated Apr. 10, 2024 (“Pl.’s Mem.”), Dkt. No. 17; Affirmation of Service of Elliot Brand, dated Apr. 11, 2024, Dkt. No. 18; Ramer Aff.; Light Decl.; Proposed Judgment, Dkt. No. 17-4.) C. Standing Since plaintiff is not an original party to the Note, I will briefly address plaintiff’s standing to bring this foreclosure action. “Under New York law, ‘[a] plaintiff establishes its Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 5 of 13 PageID #: <pageID>
6 standing in a mortgage foreclosure action by demonstrating that, when the action was commenced, it was either the holder or assignee of the underlying note.’” E. Sav. Bank, FSB v. Thompson, 631 F. App’x 13, 15 (2d Cir. 2015) (summary order) (quoting Wells Fargo Bank, N.A. v. Rooney, 19 N.Y.S.3d 543, 544 (2d Dep’t 2015)). So long as the Note is transferred through physical delivery or a written assignment before the foreclosure action is commenced, “the mortgage passes with the debt as an inseparable incident.” Thompson, 631 F. App’x at 15 (quoting U.S. Bank, N.A. v. Collymore, 890 N.Y.S.2d 578, 580 (2d Dep’t 2009)); see also Lasalle Bank Nat’l Ass’n v. Ahearn, 875 N.Y.S.2d 595, 597 (3d Dep’t 2009) (“[A]n assignee of such a mortgage does not have standing to foreclose unless the assignment is complete at the time the action is commenced.”). The execution date is controlling as an effective date of the assignment when the assignment is in writing. Lasalle Bank, 875 N.Y.S.2d at 597. Plaintiff states that it has owned and maintained possession of the Note since November 21, 2023. (See Ramer Aff. ¶ 7; Compl. ¶ 16.) In support of its motion, plaintiff has filed copies of the Note, the Mortgage, and the assignment that gave plaintiff possession. (See Ramer Aff., Exs. A-C.) Plaintiff has therefore submitted sufficient documentation to demonstrate that it has standing to bring this action. See Aurora Loan Servs., LLC v. Taylor, 34 N.E.3d 363, 366 (N.Y. 2015) (“[T]he note . . . is the dispositive instrument that conveys standing to foreclose under New York law. . . . [T]he note was transferred to [plaintiff] before the commencement of the foreclosure action—that is what matters.”) D. Notice “As a general matter, in New York a lender is not required to notify a borrower of its default on a mortgage prior to foreclosure, absent a statutory requirement or a contractual provision in the relevant loan documents.” NuBridge Com. Lending REO SPV I Inc. v. KA & B Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 6 of 13 PageID #: <pageID>
7 Props., Inc., No. 22 CV 1468, 2023 WL 11261908, at *6 (E.D.N.Y. Oct. 18, 2023) (citing HPHD Invs. Grp., LLC v. Ioannou, 137 N.Y.S.3d 484, 486 (2d Dep’t 2020)), report and recommendation adopted sub nom., NuBridge Com. Lender REO SPV I Inc. v. KA & B Props., Inc., 2024 WL 1364321 (E.D.N.Y. Mar. 31, 2024). New York Real Property Actions and Proceedings Law (“N.Y. R.P.A.P.L.”) § 1304 requires a lender to provide a ninety-day pre- foreclosure notice of a mortgage default, and R.P.A.P.L § 1306 requires that, within three days of sending a notice under R.P.A.P.L. § 1304, the lender, assignee, or mortgage loan servicer file with the superintendent of financial services certain information concerning the mortgage loan. See N.Y. R.P.A.P.L §§ 1304, 1306. However, since this is a commercial mortgage and not a home loan, plaintiff was not required to serve a ninety-day pre-foreclosure notice or file information with the superintendent of financial services. See N.Y. R.P.A.P.L. § 1304(1) (“[W]ith regard to a home loan, at least ninety days before a lender, an assignee or a mortgage loan servicer commences legal action against the borrower, or borrowers at the property address and any other address of record, including mortgage foreclosure, such lender, assignee or mortgage loan servicer shall give notice to the borrower[.]”) (emphasis added); see also Great Normandy LLC v. 4 Queens Homes Inc., No. 22 CV 1624, 2023 WL 11845610, at *2 (E.D.N.Y. Feb. 28, 2023) (“Since this is a commercial and not a residential loan, the 90-day Notices required by Section 1304(1) of the RPAPL were not required.”); Teves Realty Corp v. Terry, No. 14 CV 3226, 2021 WL 3912297, at *2 (E.D.N.Y. Sept. 1, 2021) (stating that “§ 1304 applies only to a ‘home loan’ ” and not to a note secured by commercial property); Secured Asset Mgmt., LLC v. Cong. Beth Joseph Zwi Dushinsky, No. 17 CV 5588, 2019 WL 4861411, at *6 (E.D.N.Y. Sept. 30, 2019) (stating that “§ 1304 . . . applies only to residential loans”), aff’d sub nom., Secured Asset Mgmt., LLC v. Dushinsky, 828 F. App’x 815 (2d Cir. 2020); B & H Fla. Notes Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 7 of 13 PageID #: <pageID>
8 LLC v. Ashkenazi, 51 N.Y.S.3d 59, 59 (1st Dep’t 2017) (“RPAPL 1306 is [ ] inapplicable[,] [because] [t]hat statute is triggered by RPAPL 1304, which applies only to a ‘home loan.’”). In addition, the Mortgage states that “the Debt shall without notice become immediately due and payable at the option of Mortgagee if any payment required herein is not paid when due or on the happening of any ‘Event of Default.’” (Mortgage, annexed to the Ramer Aff. as Ex. B, at 3 (emphasis added)). Accordingly, plaintiff was not required to notify Borrower of the default. E. Foreclosure and Sale Under New York Law, a plaintiff in a mortgage foreclosure action may establish a prima facie case by producing evidence that demonstrates the existence of a mortgage, a note, and proof of default on the note. Windward Bora LLC v. Valente, No. 18 CV 4302, 2019 WL 3872853, at *3 (E.D.N.Y. July 16, 2019) (“Under New York law, a plaintiff seeking to foreclose upon a mortgage must demonstrate ‘the existence of the mortgage and mortgage note, ownership of the mortgage, and the defendant’s default in payment’ on the loan secured by the mortgage.”) (quoting Gustavia Home, LLC v. Bent, 321 F. Supp. 3d 409, 414 (E.D.N.Y. 2018)). Once the prima facie case has been established, “[t]he burden then shifts to the defendant[s] to raise a triable issue of fact, including with respect to any alleged defenses or counterclaims.” Bent, 321 F. Supp. 3d at 414-15 (citing Fleet Nat’l Bank v. Olasov, 793 N.Y.S.2d 52, 52 (2d Dep’t 2005)). Plaintiff has established the common law elements required for prima facie entitlement to a foreclosure judgment. See Valente, 2019 WL 3872853, at *3 (enumerating the common law elements). First, plaintiff has submitted copies of the Note and Mortgage. (See Ramer Aff., Exs. A and B.) Second, plaintiff has established ownership of the Note by showing that it was assigned to plaintiff on November 21, 2023. (Id. ¶ 7, Ex. C.) Third, plaintiff has Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 8 of 13 PageID #: <pageID>
9 established that NLL defaulted on the Note secured by the Mortgage by failing to pay the balance due when the Loan matured on August 31, 2023. (Id. ¶ 12; Compl. ¶ 17.) In addition, the Guarantors defaulted under the terms of the Note, Mortgage, and Guaranty by failing to pay the balance due when the Loan matured. (Ramer Aff. ¶ 13, Ex. D; Compl. ¶ 18.) Defendants have not appeared in this action to present any defenses or counterclaims. Therefore, I find that plaintiff has established a presumptive right to foreclose on the Property and I respectfully recommend that plaintiff’s motion for default judgment be granted. F. Damages A party’s default “is not considered an admission of damages.” Cement & Concrete Workers Dist. Council Welfare Fund v. Metro Found. Contractors Inc., 699 F.3d 230, 234 (2d Cir. 2012) (citation omitted). On a motion for default judgment, a court “must instead conduct an inquiry in order to ascertain the amount of damages with reasonable certainty.” Credit Lyonnais Sec. (USA), Inc. v. Alcantara, 183 F.3d 151, 155 (2d Cir. 1999). “There must be an evidentiary basis for the damages sought by plaintiff, and a district court may determine there is sufficient evidence either based upon evidence presented at a hearing or upon a review of detailed affidavits and documentary evidence.” Cement & Concrete Workers Dist. Council Welfare Fund, 699 F.3d at 234 (citing FED . R. C IV . P. 55(b)(2)); Fustok v. ContiCommodity Servs., Inc., 873 F.2d 38, 40 (2d Cir. 1989). The note and mortgage, as the governing instruments, should determine any default damages. Builders Bank v. Rockaway Equities, LLC, No. 08 CV 3575, 2011 WL 4458851, at *5 (E.D.NY. Sept. 23, 2011). A party can substantiate damages by providing a “transaction history or detailed breakdown of the date and amount of each type of disbursement.” Empire Cmty. Dev., LLC v. Larsen, No. 23 CV 5896, 2024 WL 4575290, at *3 (E.D.N.Y. Oct. 24, 2024) (citation omitted) (finding plaintiff’s loan summary Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 9 of 13 PageID #: <pageID>
10 “that ke[pt] a running total of payments through” the date of defendant’s last payment paired with detailed interest calculations sufficient to establish damages amount), report and recommendation adopted, 2025 WL 327985 (E.D.N.Y. Jan. 29, 2025). Plaintiff seeks a judgment of foreclosure and sale in the amount of $255,000, plus interest from August 1, 2023 to September 1, 2023 at the Note rate of twelve percent, and from September 1, 2023 through the date of judgment at the default rate of twenty-four percent. (Ramer Aff. at 6; Note at 1, 4, 15 (setting interest rates).) Plaintiff has provided the Borrower’s payment history, showing the principal balance. (See Ramer Aff., Ex. F.) This is sufficient to establish the amount due. E. Sav. Bank, FSB v. Beach, No. 13 CV 341, 2014 WL 923151, at *10-11 (E.D.N.Y. Mar. 10, 2014) (awarding plaintiff amount requested where plaintiff provided the defendants’ payment history). As of April 4, 2024, the total amount due under the Note was $297,041.18, which includes principal of $255,000; $39,100 in interest; $2,686.18 in insurance advances; and $225 in unpaid foreclosure administrative fees. (Ramer Aff. at 6.) I therefore recommend that judgment be entered against defendants in the amount of $297,041.18 plus interest at the rate of twenty-four percent from April 4, 2024 to the date of judgment. G. Attorney’s Fees and Costs Plaintiff seeks reimbursement for $4,935 in attorney’s fees and $2,018.65 in costs. (Ramer Aff. at 6.) Under the terms of the Note, NLL agreed “to pay all costs and expenses of collection incurred” by the Lender, “in addition to principal and interest (including, without limitation, reasonable attorneys’ fees and disbursements which, in event Lender starts a Foreclosure and Sale, shall not be less than $5,000.00.)” (Note at 4.) “[A]n award of attorneys’ fees pursuant to a contractual provision may only be enforced to the extent that the amount is reasonable and warranted for the services actually Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 10 of 13 PageID #: <pageID>
11 rendered.” Exec. Risk Indemn., Inc. v. Fieldbridge Assocs. LLC, 642 F. App’x 25, 25 (2d Cir. 2016) (summary order) (cleaned up); see also Carco Grp., Inc. v. Maconachy, 718 F.3d 72, 86 (2d Cir. 2013) (“[T]he touchstone for an award of attorneys’ fees pursuant to a contract is reasonableness.”); Proimmune Co., LLC v. Holista Colltech Ltd., No. 20 CV 1247, 2024 WL 54281, at *1 (S.D.N.Y. Jan. 4, 2024) (where the contract “unmistakabl[y]” entitles plaintiff to a fee award, the court must still “examine whether Plaintiff’s request is reasonable”) (citation omitted). “The most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cnty. of Albany, 522 F.3d 182, 186 (2d Cir. 2008) (quoting Hensley v. Eckerhart, 461 U.S. 424, 433 (1983)). This calculation yields a “presumptively reasonable fee,” commonly referred to as the “lodestar.” Millea v. Metro-North R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011) (quoting Arbor Hill, 522 F.3d at 183). Although originally developed for use in civil rights actions, “the same principle has been applied to awards of contractual attorney’s fees.” Byline Bank v. SDS Dining Corp., 22 Civ. 6439, 2024 WL 1422812, at *5 (S.D.N.Y. Apr. 3, 2024) (collecting cases). Within this broad mandate, the district court has “considerable discretion” in determining the amount of the award. Arbor Hill, 522 F.3d at 190. An application for attorney’s fees must be accompanied by contemporaneous time records specifying, for each attorney, the date, the hours expended, and the nature of the work done. N.Y. State Ass’n for Retarded Children, Inc. v. Carey, 711 F.2d 1136, 1148 (2d Cir. 1983). Absent such documentation, the fee request must be denied. See, e.g., United States v. Carroll, No. 19 CV 1709, 2023 WL 3260128, at *9 (W.D.N.Y. Mar. 29, 2023) (denying request for Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 11 of 13 PageID #: <pageID>
12 attorney’s fees associated with foreclosure action because plaintiff’s “request for attorney’s fees remains insufficiently supported for want of contemporaneous time records or supporting documentation” (quotations omitted)), report and recommendation adopted, 2023 WL 3254937, at *1 (W.D.N.Y. May 3, 2023). In addition, costs must be substantiated with invoices or other documentation. See 5316 Church Ave., LLC v. Yhun, No. 14 CV 7376, 2018 WL 6204615, at *4 (E.D.N.Y. July 18, 2018), report and recommendation adopted as modified, 2018 WL 6201709 (E.D.N.Y. Nov. 28, 2018). Here, plaintiff has submitted no contemporaneous time records, no expense receipts or invoices, and no biographical information for the attorneys and staff who worked on this matter. I therefore recommend that the request for fees and costs be denied with leave to renew upon the submission of proper documentation. H. Appointment of Referee Plaintiff requests the appointment of a referee to effectuate a sale of the Property and distribute the funds from the sale in accordance with R.P.A.P.L. § 1354. (Proposed Judgment, Dkt. No. 17-4.) “Courts routinely appoint referees to effectuate the sale of foreclosed properties.” Valente, 2019 WL 3872853, at *4 (collecting cases). Accordingly, I recommend that the court appoint a referee to manage the foreclosure and sale. Since plaintiff has not requested any specific person be appointed as referee, I further recommend that the court require plaintiff to propose the names of three referees by letter to the court, along with a brief description of their qualifications, prior to making the appointment. CONCLUSION For the foregoing reasons, I respectfully recommend that plaintiff’s motion for a default judgment of foreclosure and sale be granted in the amount of $297,041.18 plus interest at Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 12 of 13 PageID #: <pageID>
13 the rate of twenty-four percent from April 4, 2024 to the date of judgment. I further recommend that a referee be appointed to effectuate a sale of the Property and distribute the funds from such sale in accordance with R.P.A.P.L. § 1354. Any objections to this report and recommendation must be filed with the Clerk of the Court within fourteen (14) days. Failure to file objections within the specified time waives the right to appeal the district court’s order. See 28 U.S.C. § 636(b)(1); FED . R. C IV . P. 72, 6(a), 6(d). Plaintiff is directed to serve copies of this report and recommendation on the defaulting defendants by regular mail, and to file proof of service within ten (10) days of the date of this report and recommendation. Respectfully submitted, /s/ ROBERT M. LEVY United States Magistrate Judge Dated: Brooklyn, New York October 28, 2025 Case 1:23-cv-09385-PKC-RML Document 23 Filed 10/28/25 Page 13 of 13 PageID #: <pageID>
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