November 01, 2012 /24-7PressRelease/
-- Foreclosures Slow in New Jersey Because of Legal Issues
Before the summer of 2010, foreclosures and the sale of houses by sheriff's auctions whirled through the courtrooms of New Jersey. But, after the discovery that banks were "robo-signing" mortgage documents used to prove home ownership in foreclosure proceedings, foreclosures and sheriff's auctions slowed in the state. Even after lenders in New Jersey demonstrated they were abiding by foreclosure rules, foreclosure activity has not resumed to the previous level because of a recent state appellate court decision.
The appellate court decision, made in August, dismissed a foreclosure action because of the lack of proper notice to the homeowner. The appellate court found that the lender failed to identify itself in foreclosure notices. The homeowner received foreclosure notices from the mortgage servicer but not from the bank that owned the loan, and the court ruled that New Jersey's 1995 Fair Foreclosure Act requires notice of foreclosure by the real owner of the loan. The court's ruling demonstrates the concern over the chain of home ownership in foreclosure actions since the discovery that mortgage documents were hastily reviewed by bank employees.
As an added measure to prevent the oversight of foreclosure notice and robo-signing of mortgage documents related to foreclosure, new state court rules require attorneys who represent lenders to personally attest that they have checked the facts of a foreclosure filing with an employee of the lender. However, many attorneys worry they will end up certifying the lender's incorrect information. As a result, attorneys who represent lenders in foreclosure proceedings have been reluctant to sign the certification. This reluctance has contributed to the slowing of foreclosure procedures in the state.
Despite the slowing, advocates for lenders and homeowners agree it is important to resolve the chain of ownership issue so that foreclosure procedures can move ahead correctly. Advocates for the banks say the home loans that go through the foreclosure process are valid and the money is owed by homeowners but agree procedural requirements should be met. Advocates for distressed homeowners say correct paperwork is important, especially when it involves a person's most important asset.
The road to a workable solution may depend on a ruling by the New Jersey Supreme Court and whether the state Supreme Court will require foreclosure notices by lenders in all cases including ones already filed or only in future cases.
If you are a distressed homeowner in New Jersey, contact an experienced New Jersey foreclosure attorney to discuss your legal options.
Article provided by Levitt & Slafkes, P.C.
Visit us at http://www.levittslafkes.com---
Press release service and press release distribution provided by http://www.24-7pressrelease.com
# # #Read more Press Releases from FL Web Advantage: