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New Jersey Foreclosure Tsunami on the Horizon
A Supreme Court decision regarding the procedures the banks must follow under the New Jersey Fair Foreclosure Act before filing foreclosure complaints is expected in early 2012.
January 12, 2012 /Law and Legal PR News/ -- New Jersey Foreclosure Tsunami on the Horizon
Mortgage defaults are at an all time high in New Jersey and throughout the country. Because of circumstances such as high unemployment and increased living costs, through no fault of their own, many people are forced to choose between their family and paying their mortgage. Realistically, food and keeping the lights must be the priority.
Surprisingly, however, mortgage foreclosures, the legal process that banks must use to take away (seize) a person's home who is not paying their mortgage, and evictions, are way down in New Jersey. That is about to change!!
You may ask -why are the number of foreclosures down when more people are not paying their mortgage? A little more than a year ago, the New Jersey Supreme Court issued an order which effectively stopped (put a moratorium) on all of the major banks from filing new foreclosures and from continuing with many that had already been filed. The Court did so because it became aware of the banks' practice of basing many of its foreclosures on the practice of robo-signing. Simply stated, robo-signing is filing documents with the Court which are not verified and which in many cases are false. Employees of the major banks had routinely signed hundreds of documents which swore that he/she had personally verified their accuracy when they had not done so. Those documents were then submitted to courts as if the documents were true, to enable the banks to foreclose on delinquent properties.
Several months ago the Court gave most of the banks the green light to continue with and file new foreclosure cases. However, some recent cases decided by the New Jersey Courts have called into question additional practices of the bank regarding their filing of foreclosures. One of these cases, U.S. Bank v. Guillaume, was recently heard by the Supreme Court. At the heart of that case are the procedures the banks must follow under the New Jersey Fair Foreclosure Act before filing foreclosure complaints. A decision is expected in that case in early 2012.
Regardless of how the Supreme Court rules, the banks will be provided with the needed guidance on how to proceed with mortgage foreclosures. There are estimates that approximately 40,000 foreclosure cases are waiting to be filed and approximately 60,000 cases that have already been filed but are not being pursued until the Supreme Court rules. As soon as the Supreme Court rules it is expected that all of those cases, plus countless others, will cause a tsunami of foreclosures.
Don't wait for the tsunami to hit and for you to receive foreclosure papers. The sooner you address the issue the more likely you can succeed in saving your home.
Article provided by Levitt & Slafkes, P.C.
Visit us at www.levittslafkes.com
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