Major NJ Case on Lost Mortgage Note in Foreclosure

Posted on August 11, 2011

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A New Jersey appellate court overturned a foreclosure because the bank essentially lost the underlying foreclosure note. This decision is very important because many mortgage notes have been lost. Or, let’s say just that the banks can’t find them. Legally, the actual possession of the piece of paper is critical. That means that a copy of the note will not work in a court of law.

This case has wide implications for wrongful foreclosure lawsuits as mortgage companies have had such slipshod practices that very many mortgage notes cannot be located. As such, very many foreclosures will not stand up in court.

Big implications. Doubtless, this decision will be appealed. Keep your eye on it.

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