In New Jersey, homeowners who have mortgages on their primary residence, referred to as “residential mortgages,” are entitled to certain protections under the New Jersey Fair Foreclosure Act (FFA) and the New Jersey Court Rules. In a decision approved for publication on June 25, Sturdy Savings Bank v. Roberts, No. F-15764-10, 2012 N.J. Super. LEXIS 106 (Ch. Div. Feb. 21, 2012), Superior Court Judge William Todd of the Chancery Division in Cape May County determined that a property that secures a residential mortgage, but which is not currently occupied by the debtor, no longer qualifies as residential.
As a result, the court agreed with the lender’s counsel that the debtor was not entitled to the protections afforded to borrowers under the FFA with respect to a right to cure any default. The court found, however, that the lender’s obligations as to service of papers under the Court Rules still had to be met. The Chancery Division’s determination in this case is significant as it may afford lenders, which have been suffering from extensive delays in completing foreclosures in New Jersey, an opportunity to expedite the process.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
