M-1

FORECLOSURE IN FEDERAL COURTS

When a judgment has been rendered in favor of an Agency of the State or a Municipality other than the Industrial Commissioner of the State of New York,it will be adequate to join the State of New York or such Municipality without joining the Agency as a party defendant provided that appropriate recitals are contained in the compliant giving the reason for joinder as a Commissioner,agency, or municipality.

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M-2

FORECLOSURES IN FEDERAL COURTS

Exception need not be taken to a publication of a public sale of realty or interest therein under any order, judgment or decree of any court of the United States provided it has been made in accordance with the Federal Statute(28 U.S. Code Sec. 2002) which reads as follow:

"A public sale of realty or interest therein under any order, judgment or decree of any court of the United States shall not be made without notice published once a week for at least four weeks prior to the sale in at least one newspaper regularly issued and of general circulation in the county, state or judicial district of the United States wherein the realty is situated."If such realty is situated in more than one county, state, district or circuit,such notice shall be published in one or more of the counties, states, or districts wherein it is situated, as the court directs. The notice shall be substantially in such form and contain such description of the property by reference or otherwise as the court approves. The court may direct that the publication be made in other newspapers. This section shall not apply to sales and proceedings under Title 11 or by receivers or conservators of banks appointed by the Comptroller of the Currency."

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M-3

FORECLOSURE - PARTIES - SUCCESSORS OF DECEASED MORTGAGEE

When the holder of a junior lien dies intestate and no proceedings have been had in his estate for the appointment of an administrator, the lien will be deemed barred in an action to foreclose a prior mortgage if all the next of kin have been made parties and satisfactory proof is furnished of the death,the intestacy, the family history and the absence of creditors of the estate. In such situations the lack of proof that there were no creditors may be disregarded when more than six years have elapsed since the delivery of the referee's deed.

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M-4

ASSIGNMENTS OF JUDGMENTS TO UNITED STATES OF AMERICA

When a judgment, subsequent in lien to a mortgage being foreclosed and docketed prior to the filing of a notice of pendency, or a judgment docketed subsequent to the filing of a notice of pendency, is assigned to the United States of America after the filing of the notice of pendency in an action to foreclose such mortgage, then such assignment may be disregarded provided the recordholder of such judgment filed prior to the notice of pendency, is properly joined and served as a party defendant, all necessary papers are served on such party, and the action goes to judgment and sale.

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M-5

MORTGAGE SATISFACTION BY AFFIDAVIT RPAPL SECTION 1921

A mortgage secured by property improved by a one-to-six family, owner occupied,residential structure or residential condominium unit may be disregarded without the recording of a Satisfaction of Mortgage provided there has been compliance with RPAPL Section 1921.

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M-6

RELEASE IN LIEU OF SATISFACTION OF MORTGAGE

When the premises affected by a mortgage lien is released of record instead of the mortgage being satisfied, the mortgage will be omitted as an objection to title.

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M-7

SMALL ANCIENT MORTGAGES

A mortgage in the face amount of $15,000 or less which matured more than thirty years ago and which is not recited in the chain of title for 20 years or more, may be disregarded upon an affidavit of non-payment of principal or interest or of demand of owners for 12 years, provided that the present owner or an ancestor was not the mortgagor and there has been one or more transfers of title for value.

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M-8

UNRECORDED MORTGAGE

Recital of an unrecorded mortgage in a deed of record for 20 years or more maybe passed on proof that for 6 years or more last past no principal or interest has been paid or demanded and no knowledge of said unrecorded mortgage was had by the owners. Where such recitals is contained in the last deed of record satisfactory proof will be required to dispose of the objection.

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