In New York, it is settled precedent that a judgment of
foreclosure and sale is final as to all questions at issue between
the parties1. Thus, once a final judgment is entered,
both parties have no recourse or ability to raise a new defense or
counterclaim. A recent case from the Supreme Court of New York
illustrates this point.
In Jones v. Flushing Bank, the plaintiff, Monique Jones
("Jones"), executed a note secured by a mortgage covering
real property. Both the note and the mortgage were executed in
March of 2005 in favor of Flushing Bank (the "Bank").
Jones then conveyed the property to Big Time Holdings, LLC
("Big Time") in June of 2005. In July, 2014, Jones
defaulted under the note and mortgage by failing to make the
payments due thereunder. That November, the Bank commenced a
foreclosure action on the property and labeled the complaint
"Commercial Mortgage Foreclosure Action." Jones and Big
Time asserted an affirmative defense stating that the property
