When a homeowner defaults on a mortgage and the lender decides to foreclose, the lender must come forward with the proper documentation. Recent New Jersey decisions allow attorneys and their clients to stave off foreclosure, and even get the case dismissed, by taking advantage of strict adherence to the law. Here are four winning defenses to any residential foreclosure.
The lender must establish standing bybeing the holder of the mortgage
In order to show standing, “the plaintiff must have a sufficient stake in the outcome of the litigation, a real adverseness with respect to the subject matter, and there must be a substantial likelihood that the plaintiff will suffer harm in the event of an unfavorable decision.” New Jersey Citizen Action v. Riviera Motel Corp., 296 N.J. Super. 402, 409-410??(App. Div. 1997). In the foreclosure context, the plaintiff must demonstrate that he is the holder of the mortgage and note at the time the complaint is filed. Failure to prove this fact leads to dismissal of the case.
