Posts Tagged ‘Mortgage Foreclosure’

Real Estate Crisis – Foreclosure Procedure Updated

Friday, September 12th, 2008

The New Jersey Supreme Court has adopted a set of new and revised rules on mortgage foreclosure procedures designed to modernize the foreclosure practice in the face of the real estate crisis gripping the nation and particular and New Jersey in general.
 
Going forward, all foreclosing plaintiffs will be required to file a foreclosure specific case information statement with its first pleadings.   In addition, the new rules will require that the foreclosing party serve an affidavit of the amount due along with a Notice of Motion requesting final judgment of foreclosure.   The advisory committee on foreclosure practice in its statement believes that this rule amendment will put lenders, borrowers, and other parties on notice of this specific amount due and how it was calculated.

If you have any questions regarding New Jersey’s foreclosure practice, you may contact Bonnie Wright, Esq., at bwright@hnlawfirm.com.

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Foreclosing Bank Denied Legal Fees and Costs

Friday, September 5th, 2008

In a foreclosure, a plaintiff cannot recover counsel fees against a homeowner or borrower in foreclosure actions prior to filing the foreclosure complaint.  

A recent decision has been rendered by the Appellate Division clarifying when a foreclosing plaintiff can recover counsel fees in a foreclosure action.  

The New Jersey Appellate Division of the Superior Court ruled that the Fair Foreclosure Act which references the New Jersey Rules is a specific limitation on the amount of attorney’s fees a lender can recover.   New Jersey court rules bar the recovery of any amount of attorneys fees unless a Court rule expressly permits those fees.   It was clear to the Court that attorney’s fees to the lender are permitted only when the lender actually files a foreclosure complaint and not before.   The case is significant because in many instances lenders will impose counsel fees and costs incurred prior to the filing of a foreclosure complaint.   This practice has been seldom challenged but with this decision, lenders will no longer be able to charge counsel fees as a condition to reinstating the mortgage unless it has filed a complaint and then has agreed to settle with the defaulting borrower.

For more information contact Bonnie Wright, Esq. at bwright@hnlawfirm.com

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