In New Jersey, homeowners who have mortgages on their primary residence, referred to as “residential mortgages,” are entitled to certain protections under the New Jersey Fair Foreclosure Act (FFA) and the New Jersey Court Rules. In a decision approved for publication on June 25, Sturdy Savings Bank v. Roberts, No. F-15764-10, 2012 N.J. Super. LEXIS 106 (Ch. Div. Feb. 21, 2012), Superior Court Judge William Todd of the Chancery Division in Cape May County determined that a property that secures a residential mortgage, but which is not currently occupied by the debtor, no longer qualifies as residential.
As a result, the court agreed with the lender’s counsel that the debtor was not entitled to the protections afforded to borrowers under the FFA with respect to a right to cure any default. The court found, however, that the lender’s obligations as to service of papers under the Court Rules still had to be met. The Chancery Division’s determination in this case is significant as it may afford lenders, which have been suffering from extensive delays in completing foreclosures in New Jersey, an opportunity to expedite the process.
