I write once more [See 225 N.J.L.J. 2875; Oct. 28, 2019, p. 23, "More on Clogging the Right to Redemption"] on the topic of  Equitable Mortgages. This time, my reference is to the article entitled “Deed in Lieu of Foreclosure or Equitable Mortgage?” published on July 30, 2020. Both articles cited Zaman v. Felton, 219 N.J. 199 (2014).

The current article, though, came from a significantly different factual basis. Specifically, it relates to the considerations following a default on a mortgage loan and states that “If a lender plans to accept a deed in lieu of foreclosure in New Jersey, it should be cognizant of the risk that the transaction may be recharacterized as an equitable mortgage if the transaction is not executed properly.”