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Recording Procedures, Formalities, and Fees (NJ) | Practical Law



 

New Jersey homeowners have reported that their lenders have denied or cancelled loan modifications due to alleged titles issues against their home, such as a lien or judgment like a second mortgage, equity loan, Home Owners Association HOA lien, or credit card judgment. The Lenders state that the liens or judgments prevent them from having clear marketable title. However, this should not stop a modification. Lenders want to make sure that they have the first lien position against your home so that they will have the first claim to the property in the event of foreclosure.

However, there is a New Jersey statute that protects the homeowner against this issue, and the lenders are not allowed to cancel a loan modification for this reason.

Your modification is not a new agreement. It modifies your original mortgage, so that mortgage keeps its lien position. If your mortgage was recorded before the liens and judgments identified by your lender, they should NOT deny or cancel the modification. If your lender has denied or cancelled your loan modification due to a lien or other title issue against the property, contact the Law Office of Ira J. Metrick today. We can carefully examine your situation and determine whether your lender has the authority to deny or cancel your modification, and we can help you take legal to enforce your Modification.

Ira J. Common Mortgage Servicer Violations. Metrick Esq. Blog Contact. A Modification should not be denied or cancelled for clear and marketable title issues, if those issues arose after the mortgage was recorded According to the New Jersey Recording Act N.

What Should I Do? Contact Information Ira J. Contact Us

 


State of New Jersey



  Thus, if Bob is the first to record the conveyance, he will be the owner even if he knew about the prior conveyance to Alice. The ntoice majority of states in the United States employ a system of recording legal instruments otherwise known as deeds registration that affect the title of real estate as the exclusive means for publicly documenting land titles and interests. The family friend was deemed to be a tenant in common with Brancato. About the Firm. Construction Disputes. The same is true respecting most types of unrecorded liens or encumbrances.    


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