An appellate New Jersey court ruled recently that any lender trying to foreclose on real estate must prove possession of the mortgage note. In fact, the lender has to prove possession before it is even allowed to file a complaint. If there is no mortgage note, then the lender lacks what is called “standing.” Standing is basically legalese for “ability to sue.”
This was the second recent pro-homeowner decision of the New Jersey Courts. The first required lenders to include more information with the notice of intention to foreclose. All in all, these decisions have delivered some good news to New Jersey homeowners.
If only someone could figure out how to turn around the economy so that there would not be so many foreclosures being filed in the first place, now that would be really good news.