New Jersey is a judicial foreclosure state, which means that your foreclosure action must be brought before a court. You may be able to put the foreclosure action on hold pending court review if you can successfully challenge it with one or more of the following defenses:
Mortgage ownership – The foreclosing party must be able to prove that ownership of the mortgage. If your mortgage has been bought and sold by a number of different lenders over the years – a common occurrence – the foreclosing party must have the documentation to prove that they are the present owner of your mortgage.
Military duty – The Servicemembers Civil Relief Act provides military members on active duty with an automatic 12-month postponement of the foreclosure proceeding if that proceeding was initiated during the time a service member was on active duty.
Unfair lending practices – If you find that your lender violated either federal or state consumer protection laws, you may be able to successfully fight your foreclosure. In the past few years, the Consumer Financial Protection Bureau (“CFPB”) has issued a number of mortgage servicing rules that require lenders and mortgage servicers to provide additional protections to borrowers, including the provision of loss mitigation efforts prior to foreclosure.
Mistakes by mortgage servicer – Many lenders contract with mortgage servicers to manage payments and enforce the mortgage terms. If your mortgage servicer has made a serious error in handling your account, it could be a justifiable reason to stop your foreclosure.
Violations of state procedure – You may be able to challenge your foreclosure if your lender didn’t follow the procedural requirements for bringing an action in New Jersey.
Mortgage terms are “unconscionable” – If the circumstances of your foreclosure are so unfair that they “shock the conscience” of the court — for example, if the mortgage loan contains unduly harsh terms — you could have a valid defense.
If you are a homeowner experiencing difficulty in making your mortgage payments, or have been served with foreclosure papers, contact Johnson Legal PC for a consultation to find out what options exist in addressing the lender’s action and defending your rights and home under the law.
