Long Island, NY Foreclosure: I was served with a complaint to reaffirm the mortgage which was never recorded. Do I have to answer the complaint?

Generally, if the bank never recorded the mortgage then the bank has an unsecured loan and it can potentially lose its priority over other liens if it does not do anything to protect its interest. If the bank has a duplicate original mortgage then it can record it in the land records where the property in located and it will have a secured mortgage as of the date it was recorded. If it does not have a duplicate original mortgage then it will need to commence a lawsuit seeking to confirm the mortgage. If the borrower received the loan proceeds at closing, then it is likely the bank will obtain the relief it is seeking. However, sometimes the homeowner has defenses that can prevent the bank from obtaining the relief it is seeking. If there are defenses, then they need to be raised otherwise they will be lost. It is best to consult with an experienced attorney to make sure there are no valid defenses before a decision is made to not answer the complaint.