Federal Deposit Insurance v. Bombero

The only issue in this certified appeal is whether, under the circumstances of this case, a foreclosing mortgagee was entitled to a court order discharging the lien of a junior judgment lienholder who mistakenly had been omitted from the foreclosure proceedings. The plaintiff, the Federal Deposit Insurance Corporation, is the successor in interest to BankMart, which held a defaulted first mortgage on property owned by Gary Knauf. The defendant, Stephen C. Bombero, is a judgment creditor of Knauf who recorded on the Knauf property a judgment lien that was junior to three previously recorded…