If you have fallen significantly behind on your mortgage payments in New Jersey, you might receive a notice of intent to foreclose. This advises you that unless the amount of your delinquency is paid, a complaint will be filed in Superior Court, seeking an order allowing your property to be sold at a public auction. However, once the complaint is filed, you have the right to raise defenses — including challenges to the validity of the foreclosure case itself.

The following are common foreclosure defenses that, if effectively mounted, can forestall and perhaps lead to dismissal of the court case:

• Lack of standing — The lender or service company bringing the foreclosure action must show they are the present owner of the mortgage, which may have been bought and sold multiple times. Otherwise, they have no right to bring the action.
• Procedural errors or violations — The mortgage holder may have failed to follow proper procedures or violated state or federal laws during the foreclosure process. This could include errors in the notice of intent to foreclose, improper service of documents or failure to comply with New Jersey's foreclosure mediation program requirements.
• Robo-signing — The mortgage holder or its representatives may have engaged in illegal mass production and signing of foreclosure documents without proper review.
• Breach of contract — The mortgage holder may have breached the terms of the mortgage agreement, such as by failure to properly credit payments or by misapplication of funds.
• Fraud or misrepresentation — The lender may have engaged in fraudulent or deceptive practices during the loan origination or modification process.
• Unconscionability — The terms of the loan might be so harsh or one-sided that they shock the conscience of the court.
• Loan modification or workout options — You might be able to show that you tried to work with the lender to modify your loan or explore other workout options but that the lender refused to negotiate in good faith.
• Unfair debt collection practices – There may have been violations of the Fair Debt Collection Practices Act (FDCPA), such as using unfair or abusive tactics.
• Unfair lending practices — The lender or mortgage servicer may have violated federal or state consumer protection laws or regulations. These may include failure to comply with rules issued by the Consumer Financial Protection Bureau.

The most potent defense to a foreclosure action is filing for bankruptcy. This results in the issuance of an automatic stay, which temporarily halts all actions by creditors to collect on debts. A bankruptcy case can result in discharge of most or all of your debts while letting you keep much of your property —including your home in most cases.

The Law Offices of James C. Zimmermann serves clients throughout northern New Jersey in defense against mortgage foreclosures. We have offices in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley. Call us at 973-764-1633 or contact us online to schedule your consultation.