In Bank of America, N.A., v. Melissa Limato, No. A-4880-10T3 (N.J. Super. Ct. App. Div. July 2, 2012), the Appellate Division dismissed the case in favor of the homeowner because Bank of America (“Bank”) failed to comply with the notice requirement of the Fair Foreclosure Act (“FFA”), N.J.S.A. 2A:50-56, and “lacked standing to pursue the foreclosure as it could not demonstrate its status as the holder of the note, a non-holder with possession of the note, or that the original note was lost, as required under the Uniform Commercial Code” (“UCC”), N.J.S.A. 12A:3-301.
The Bank violated the FFA because the Notices of Intention to Foreclose (NOI) sent after Limato defaulted on her loan did not notify Limato of the Bank’s status as lender nor did the notices provide the Bank’s name or address. The FFA requires that the residential mortgage lender notify the borrower in the NOI of its status as the lender. Id. at 8; see N.J.S.A. 2A:50-56(c)(11). Further, because none of the parties could offer proof that the Bank owned or controlled the underlying debt secured by the mortgage, the judge ordered the dismissal of the complaint without prejudice.
This case highlights that there is a standard that Banks must meet in order to justify entitlement to foreclosure.
© 2012 Nissenbaum Law Group, LLC
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