Ordered that the order is affirmed, without costs or disbursements.
The Supreme Court did not improvidently exercise its discretion in vacating the judgment of foreclosure and sale and the ensuing sale (CPLR 5015 [a] [1], [3]; Perellie v Crimson's Rest., 108 A.D.2d 903; Shaw v Shaw, 97 A.D.2d 403). A liberal policy has been adopted with respect to opening default judgments in furtherance of justice to permit a trial on the merits wherever possible (DFI Communications v Golden Penn Theatre Ticket Serv., 87 A.D.2d 778; Cappel v RKO Stanley Warner Theaters, 61 A.D.2d 936). In light of the respondent's meritorious defense and the parties' apparent misunderstanding concerning the priority of their liens, the Supreme Court properly exercised its discretion in vacating the judgment and ensuing sale (see, Passalacqua v Banat, 103 A.D.2d 769). Lawrence, J.P., Rubin, Balletta and Rosenblatt, JJ., concur.