Remodeling & Construction Corp. v. Melker

Action to foreclose a junior participating interest in a first mortgage. Respondents, Horowitz, Goldstein and Stein, are second mortgagees. They interposed an answer pleading two separate affirmative defenses, which in substance allege that plaintiff and a nominee of defendant owners of the property entered into a modification agreement, whereby the plaintiff’s junior interest in the first mortgage was advanced two years so that it became due prior to respondents’ second mortgage, and the interest rate and amortization payments were increased, rendering the second mortgage valueless.…