New Jersey Judge Allows Foreclosure Even Though Original Note Was Lost

In a decision certain to substantially change the playing field for New Jersey homeowners under threat of foreclosure, a Bergen County chancery judge granted summary judgment to a bank even though the original lender lost the mortgage note before assigning the mortgage to the bank now seeking to enforce the debt. The court reasoned that the homeowner would not be threatened by multiple proceedings on the same mortgage because the note was lost almost four years before and no other entity has ever attempted to demand payment from the homeowner for the loan.  New Jersey has not adopted recent amendments to the U.C.C. codifying this rule and instead the Court looked to various decisions including Bank of America, N.A. v. Alvarado, BER-F-47941-08, based on the common law doctrine of assignment and the equitable claim of unjust enrichment.

 
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