Sunday, August 21, 2011

New Jersey Supreme Court Gives Go-Ahead for Lenders to Foreclose

New Jersey Supreme Court Gives Go-Ahead for Lenders to Foreclose. The New Jersey State Supreme Court determined in December of 2010 that four of the nation’s largest lenders had to cease filing foreclosure actions due to the uncertainty over the lenders’ foreclosure systems. Justice Stuart Rabner called a halt to foreclosures by some of the biggest banks in the country in the state of New Jersey. The Supreme Court determined that Bank of America, Wells Fargo, JPMorgan Chase and other major lenders cease and desist all foreclosures in the state until they had proven that they had dealt with potential consumer abuse in their systems and could be confident that their foreclosure processes were fair and just. The Court has now determined that the lenders have satisfactorily completed the process and it is anticipated that there will imminently be a plethora of new filings.
This will undoubtedly also be met with a tremendous amount of “foreclosure defense”, ”loss mitigation”, and “foreclosure relief” advertising and regrettably, most of the firms do not offer quality relief or they are engaged in the unauthorized practice of law. I have blogged about this in the past…there simply is no way to help someone with foreclosure defense without engaging in the practice of law. Yet firms are out there servicing potential clients and charging them thousands of dollars. The New Jersey Attorney General has recently taken action against six such firms.
In an effort to remedy this situation, the New Jersey legislature recently passed the Foreclosure Rescue Fraud Prevention Act designed to compel fraudulent foreclosure rescue companies to compensate people who have lost their homes and savings by trusting them. Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, a homeowner advocacy group, explains that “New Jersey is going to be inundated with new cases of foreclosures and the bad guys will take advantage of that – they’re going over the lists right now of the people named in foreclosure filings.”
Many are encouraging Governor Christie to sign this bill into law and it is being reviewed at the moment.

Paddy Deighan, Esq

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