In another successful case, Bruce Levitt of Levitt & Slafkes, P.C. sued a lender who had improperly recorded a deed in lieu of foreclosure and was threatening to evict our client and his large family from their home. As a result of the lawsuit, the Court issued an injunction which stopped the eviction.
Our client, the homeowner, had borrowed money from a private high interest lender. He promised to repay the loan in one year. Our client had given the lender a mortgage on his home to secure the loan. At the time of the loan closing the lender also required our client to sign a deed in lieu of foreclosure.
The deed in lieu of foreclosure allowed the lender to take title to the home if the homeowner defaulted, without having to go through the NJ foreclosure process.
When the homeowner didn’t pay the loan balance the day it was due, the lender recorded the deed in lieu of foreclosure. Once the deed in lieu was recorded, the lender owned the home.
The homeowner contacted NJ foreclosure attorney Bruce Levitt of Levitt & Slafkes, P.C. when the lender demanded that he and his family move out of their home. When Bruce Levitt reviewed the documents he determined that the lender improperly recorded the deed in violation of the loan documents. He also believed there was a good legal argument that the deed was invalid under New Jersey law. The firm immediately sued the lender seeking to have the home put back into our client’s name, to void the deed and to seek damages under the New Jersey Consumer Fraud Act. The lawsuit also sought an injunction to stop the lender from evicting our client or selling the house.
The Court agreed with our firm’s position and issued a temporary injunction stopping the eviction and sale, pending the outcome of the lawsuit. Bruce Levitt is continuing to litigate the case and anticipates a favorable decision for our client.
Contact Us to Help Save Your Home
The lawyers at Levitt & Slafkes, P.c. are experienced NJ foreclosure defense litigators. We not only defend NJ foreclosure actions, but often sue mortgage lenders for their contract breaches and other violations of the law. If this is something you might need, reach out to us to explore your options.
To schedule a consultation call us at 973-323-2953 or contact us online.
We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information in this blog is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.