If your home goes into foreclosure, don’t lose hope. At least that’s the message to be gleaned from a recent New Jersey court decision that permitted the successful homeowners to retain their North Brunswick, N.J. abode. The pair won their case despite not hiring an attorney to represent them, but certainly the fact that one of the homeowners is a New Jersey realtor certainly helped their cause, setting a precedent for other Garden State homeowners fighting foreclosure.
Realtor George Elghossain and his wife Mona raised four children in the bi-level home at the center of the case. Mr. Elghossain utilized his industry knowledge to fight the foreclosure after he realized notice of the lender’s intent to foreclose was not sent by his actual mortgagor. He then questioned who actually owned his home loan and whether his monthly payments were being sent to the correct debt holder. Because of his uncertainty, he ceased making monthly mortgage payments.
Under New Jersey law, when a homeowner is facing legal action relating to their real estate, they are supposed to be notified of certain facts. Among them is both the name of the lender that owns their loan and the company’s contact information. However, in this case, loan servicer Bank of America failed to include not only the names of the lender but also the lender’s representative within its notice of intent to foreclose. Because of that, Bank of America was found to have violated New Jersey’s Fair Foreclosure Act, the state’s statute governing foreclosure actions. The Act was enacted in 1995 and has since been updated several times.
Bank of America sought to persuade the presiding judge to expand the Act’s definition of who is a lender to include any mortgage lender, mortgage investor or mortgage loan servicer that owns or is authorized to negotiate the terms of a home mortgage. In rejecting this argument, Middlesex County Judge Glenn Berman called it “’misplaced.’”
If you are a New Jersey homeowner facing foreclosure, contact attorney Christopher M. Marrone at (215) 238-1244 for advice and counsel. An experienced real estate lawyer licensed in New Jersey and Pennsylvania, Mr. Marrone has offices in Cherry Hill and Ocean City, N.J., as well as Philadelphia.