New York court rejects late challenge to Pennymac foreclosure

A New York appellate court has upheld a decision denying a corporate entity permission to intervene in a long-standing foreclosure case brought by Pennymac Corp. The New York Supreme Court, Appellate Division, Second Department, issued the ruling on October 14, 2026. [1]

According to MPA Magazine, 194 Grant Corp. purchased the Brooklyn residential property from a borrower in August 2008. Pennymac's predecessor in interest had already initiated foreclosure proceedings against that borrower and filed a notice of pendency on the property in July 2008. [1]

The corporate buyer waited until August 2022 to file a motion seeking to intervene in the action and vacate the foreclosure judgment. The appellate panel affirmed that the 14-year delay meant the challenge was brought far too late. [1]

Pennymac Financial Services, Inc., which operates mortgage production and servicing businesses alongside investment management subsidiaries, is headquartered in Westlake Village, California. [3]