New York court overturns foreclosure sale order in $400,000 mortgage row

A New York mortgage foreclosure case that began more than a decade ago has taken another turn after an appeals court overturned an order directing the sale of a residential property. On October 21, 2026, the New York Supreme Court, Appellate Division, Second Department, reversed a 2025 foreclosure judgment in Bank of America, N.A. v. Maddox. According to the court’s opinion, published by Justia, the dispute involved a $400,000 promissory note signed by Michael McNamara in 2006; his wife, Alice, also signing the mortgage on their Babylon, New York, home. After Michael died in 2010, the foreclosure proceedings continued, with the appeals court ultimately finding that the bank had not adequately established its compliance with mandatory notice requirements or its legal standing to bring the case.A $400,000 mortgage and a foreclosure caseThe case began with a mortgage secured by residential property in Babylon.