A bank can proceed with foreclosure on a mortgage it was assigned after a property owner’s personal debt was discharged in bankruptcy, a state appellate court has ruled.
Justice Jeffrey Cohen of the Appellate Division, Second Department, wrote in Deutsche Bank Trust Co. Ams. v. Vitellas, 14695/12, that although a debtor’s liability can be extinguished through bankruptcy, a mortgage holder’s right to foreclose on the mortgage to seek repayment survives the bankruptcy.
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