Almost 15 years ago we authored “Split Between Departments Muddies Subrogation Doctrine” on this very page and this same publication noting that Appellate Decisions in the Second and Third Departments had conflicting views on equitable subrogation rule while the First and Second Department Appellate Divisions remained silent. Today, all four Appellate Divisions are now synchronized on the law of equitable subrogation this article goes into the law and many of the possible consequences from this doctrine in foreclosure practice.

Priority of Debts Introduced

There are a variety of possible theories as to how a debtor’s debts should get paid off. Among the contenders are priority based on seniority, strict proportionality, and first come first served. Even as to these, there could be subgroupings. New York selects from these options and others, choosing that debts, if made into liens, be paid off in order of their seniority.