(Not legal advice, for informational purposes only)
In New Jersey, a strong foreclosure defense can be a Notice of Right to Cancel to stop a foreclosure sale from taking place.
New Jersey is a judicial foreclosure state which requires that when a homeowner defaults on a mortgage, the lender must go to court in order to repossess the home in order to take it back.
Many homeowners have forced their lenders to work with them by challenging foreclosures in court!
In New Jersey lenders must prove to the courts that they have an enforceable security interest to foreclosure on the homeowner and take back the property. The lender must have also followed all rules and regulations to foreclose on the property.
The New Jersey Consumer Fraud Act (CFA)
This act offers extensive protection from deceptive and fraudulent business practices.
Enacted in 1960 with three purposes:
1) compensate the victims;
2) punish and deter fraudulent business practices;
3) provide an incentive for competent attorneys to handle consumer protection matters.
The Act achieves these goals by providing consumers with remedies such as treble damages (three times the regular damages), attorney fees, and costs.
In United States law, treble damages indicate that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff. Treble damages are a multiple of, and not an addition to, actual damages in some instances.
Under New Jersey law, the lender must file a separate lawsuit within three months after the foreclosure sale or, if confirmation of the sale is required, from the date of the confirmation of the sale, to get a deficiency judgment. (N.J. Stat. Ann. §§ 2A:50-2, 2A:50-2.1).
If a homeowner learns that their mortgage lender violated the Truth in Lending Act, this can be a valid reason to rescind and cancel the mortgage note!
Truth in Lending Act violations can be raised as foreclosure defenses.
However, there are strict timelines and proper procedures that homeowners must follow to rescind and cancel their mortgage loan using Truth in Lending Act violations.
Learning how-to spot Truth in Lending Act (TILA) violations is the key to rescind and cancel mortgage notes permanently for fraudulent disclosures…
How is this possible ??
The Supreme Court issued its ruling in Jesinoski v. Countrywide Home Loans, Inc., 135 S. Ct. 790 (2015).
Truth in Lending Act (TILA) under section 1635 (Go look it up!!) gives the lender exactly 20 days to:
1) Return Every Payment A Borrower Ever Made!
2) Cancel The Security Instrument!
1 and 2 must be done within 20 days!