Foreclosure Defense For NJ Homeowners swindled by their Contractors

Sep 21, 2017 | Bankruptcy, New Jersey Foreclosure Defense

Foreclosure defense Lawyer in NJTalk to an NJ Foreclosure Defense Attorney if you are in Foreclosure because of your Contractor

If you are a New Jersey Homeowner facing foreclosure based on a home improvement loan where you were swindled by your contractor you now have a shot at having your claims heard in court.  (Read the full story at New Jersey Law Journal.)  A woman from Burlington County New Jersey in her case Emigrant Mortgage v. Costa that started 9 years ago had a New Jersey Appellate court remanded her case back tot he trial court for further fact-finding.  This does not mean she wo

This does not mean she won her case, but it does allow her to assert her defense under the New Jersey Home Ownership Security Act of 2009. This law allows a homeowner who borrowed money for home improvement to assert an affirmative defense against the contractor if the contractor had arranged for the loan.  This is of little help to most homeowners in foreclosure, however,  if someone was defrauded by a contractor this is now a strong defense.

In this case, it appears that the Emigrant Bank did nothing improper and the fraud was entirely committed by the contractor.  Her case and defenses were originally dismissed on a summary judgment, but the NJ Appellate Court is allowing Costa to assert the defenses against the mortgage company and the title company. The Appeals court stated, “We conclude that Costa pleaded in her complaint the elements of a consumer fraud claim authorized by HOSA. Under those circumstances, and considering our Legislature’s strong pronouncement of HOSA’s policy underpinnings … the trial judge should not have dismissed her claim on summary judgment.”

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