Fair Foreclosure Act

Posted by kevin on December 31, 2010 under Foreclosure Blog | Comments are off for this article

On December 17 in Bergen County, I was able to get a case dismissed without prejudice because the plaintiff in that case failed to comply with the Fair Foreclosure Act.

Under the Fair Foreclosure Act, a residential mortgage lender must serve a Notice of Intent to Foreclose by registered or certified mail, return receipt requested at least 30 days prior to the filing of a foreclosure complaint.

The statute requires 11 different items of information to be supplied in the Notice of Intent to Foreclose.

The statute is silent on what happens to the plaintiff in the foreclosure action if there is a failure to comply.  However, there have been a few court cases which give guidance.

First, the cases hold that partial compliance is not compliance.  Either the plaintiff provides all 11 items of information or it is non-compliance with the law.  Second, at least one appellate level court in NJ has ruled that a failure to comply must result in a dismissal of the case without prejudice.  Without prejudice means that the case can be refiled, but only after a new and correct Notice of Intent to Foreclose is served on the borrower.  This can give the borrower an additional year in their home and make the chances for favorable settlement that much higher.