A New Jersey foreclosure by Deutsche Bank was overturned by a state appellate court panel yesterday because the bank could not show it possessed a debt note for the house when it moved to foreclose in 2008.
The case could impact the prospects of many state foreclosure cases, according to Peggy Jurow, a senior attorney for Legal Service of New Jersey who deals with foreclosure and predatory lending cases.
"What today’s case does is say that the lender has to have had the assignment of mortgage and possession of the (loan) note before it files a foreclosure action," Jurow said yesterday. "They can’t fix up that sort of paperwork problem afterwards. They have to dismiss the case and start again."
In the case, Jacqueline Bethea said her two-family home in Plainfield was bought out by Elite Financial Services with the promise that she could remain in her home.
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