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The Scope of the Equitable Subrogation Doctrine

Recently, the Second Department faced three claims of equitable subrogation over a two-week period and in two of those cases, indicated that the doctrine would not be applicable if the junior mortgagee advanced funds to satisfy a senior mortgage with knowledge of an interest whose priority was inferior to that senior mortgage.

7 minute read January 01, 2017 at 06:04 AM
By
Stewart E. Sterk
The Scope of the Equitable Subrogation Doctrine

When a junior mortgagee advances funds used to satisfy a senior mortgage, the equitable subrogation doctrine permits the junior mortgagee to step into the senior mortgagee's shoes, and to obtain priority over interests junior to the senior mortgage.

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