Foreclosure Judgment Overturned Against Homeowner in Nationstar Mortgage Case

May 27, 2025

Foreclosure Judgment Overturned Against Homeowner in Nationstar Mortgage Case

In a recent appellate victory, Petroff Amshen LLP successfully reversed a foreclosure judgment obtained by Nationstar Mortgage, LLC against a Brooklyn homeowner.

The case, which had been pending since 2015, was brought before the Appellate Division, Second Department, after serious evidentiary issues were uncovered in the lender’s submissions.

The foreclosure action had advanced through summary judgment, and a court-appointed referee had been tasked with calculating the amount allegedly owed on the mortgage. Nationstar moved to confirm the referee’s findings and proceed with the sale of the property. But Petroff Amshen LLP, representing the homeowner, challenged the integrity of the records used to support the foreclosure.

The Court Found the Record Deficient

The appellate court ruled in favor of the homeowner, stating that the referee’s report was not substantially supported by the record. The decision highlighted several serious deficiencies in Nationstar’s evidence, including:

A statement submitted by someone who lacked direct knowledge of the loan history

Failure to establish a valid foundation for admitting business records, including those used to calculate the alleged amount due

Reliance on payment history from 2009 to 2013—prior to Nationstar’s acquisition of the loan—without demonstrating proper documentation or familiarity with the original records

These flaws led the court to deny Nationstar’s motion to confirm the referee’s report and to vacate the judgment of foreclosure and sale.

“Our work doesn’t stop at defending against foreclosure—we hold lenders accountable to the law”

Holding Lenders Accountable in the Appellate Division

“This case is a clear example of how inadequate documentation and procedural shortcuts can lead to wrongful foreclosure attempts,” said Steven Amshen, Managing Partner at Petroff Amshen LLP. “Our client deserved a fair and lawful process—and that's what we fought for and achieved.”

“Our work doesn’t stop at defending against foreclosure—we hold lenders accountable to the law. This decision reinforces that due process matters, even years after litigation has begun,” Amshen added.

As a foreclosure defense attorney team, Petroff Amshen LLP brought the case before the Appellate Division, successfully dismantling the legal foundation of the foreclosure through procedural scrutiny and evidentiary analysis.

Why This Decision Matters

This reversal is a powerful reminder that:

Referee reports can and should be challenged when they lack a solid foundation

Lenders must authenticate and justify every record they rely on—even if the loan changed hands

A foreclosure case is never too far along to be questioned if due process was not followed

Homeowners often feel powerless once a foreclosure judgment has been entered. But this case demonstrates that experienced legal advocacy can reverse the course of litigation, even at advanced stages.

Work with a Foreclosure Defense Attorney Who Fights Back

With decades of experience, Petroff Amshen LLP has built a reputation for protecting New Yorkers from wrongful foreclosures and unlawful lending practices. As foreclosure defense attorneys, the firm brings litigation strategy, attention to detail, and results-driven advocacy to every case.