BORDEN, ET AL. VS. CADLES OF GRASSY MEADOWS
II, LLC, ET AL. A-2386-08T1 4-5-10
Defendant was the assignee of a judgment in favor of the
Howard Savings Bank (the Howard) and its initial assignee, the
Federal Deposit Insurance Corporation (FDIC). Defendant
appealed from a judgment extinguishing and discharging a
judgment in a foreclosure action on a commercial mortgage note
and guaranties entered in favor of the Howard and the FDIC.
Plaintiffs were two of the guarantors of the note against whom
the summary judgment was entered. The judge vacated the summary
judgment because no deficiency hearing was sought by the Howard
or the FDIC after a final judgment of foreclosure was entered
and the mortgaged property was sold at a sheriff's sale. Upon
examination of how New Jersey courts have applied FMV credits to
commercial notes and mortgages, we reverse and reinstate the
summary judgment because the Howard and the FDIC had no duty to
trigger a deficiency hearing after the sale of the property and
the burden to seek a hearing rested on plainttimely objection to the sheriff's sale.
