You Occupation Can Be Used Against You in Foreclosure

In the matter of Salierno v. Kosky, the debtor was penalized in a foreclosure action as a result of knowledge he was assumed to have from an external source. In the above foreclosure matter, a loan was made to the debtors which was secured by mortgages properties in Mahwah, NJ. One on a property which Barbara Kosky owned and resided in and another on a property on which Daniel Kosky owned and resided in. When the debtors defaulted, plaintiff filed a complaint in foreclosure. The debtors filed a motion to dismiss the complaint because the properties secured by the mortgages are residential and, therefore, protected under the Fair Foreclosure Act (FFA). The FFA requires strict notice requirements for mortgages on properties used as the debtor's primary residence. The court held that, although the required notice of intent to foreclose was not sent to the debtors prior to the filing of the foreclosure action, the foreclosure action need not be dismissed because Daniel Kosky was formerly employed as a bank executive and should have known the rights of lenders and borrowers in a foreclosure action. If you are facing foreclosure, considering bankruptcy or trying to deal with overwhelming debt, you should seek experienced legal counsel immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.