The New Jersey superior court has cleared all lenders in the state to move forward with foreclosures. The last hurdle for GMAC and Ally Financial was lifted yesterday by Judge Mary Jacobson, who stated that the lenders have demonstrated “reliability of…processes” and are “permitted to resume prosecution of uncontested foreclosure proceedings”[1]. Other lenders whose practices were in question, such as Bank of America, JPMorgan Chase, Wells Fargo and OneWest Bank were cleared last month. Jacobson had denied Ally’s request to seal some of the documents it submitted as part of the case, which is why the decision for Ally was delayed[2]. Foreclosures in New Jersey have been suspended for major lenders for the better part of a year thanks to the review process. There was no other way, stated Judge Richard Williams, who reviewed the cases, “for courts to be able to separate assertions that were accurate from those that were not.”

Interestingly, New Jersey’s loan modification statistics are far better than those throughout the rest of the country[3]. This seems likely to be directly related to the fact that the six major lenders in the state have not had the option of foreclosure in the last 12 months. Do you think that these figures are linked?

Thank you for reading the Bryan Ellis Real Estate Letter!

Your comments and questions are welcomed below.



[1] http://www.dsnews.com/articles/new-jersey-lifts-its-final-foreclosure-ban-2011-09-14

[2] http://www.nationalmortgagenews.com/dailybriefing/2010_431/nj-lifts-ban-foreclosures-robo-signers-1026543-1.html

[3] http://www.nytimes.com/2008/12/21/realestate/21mort.html