New Jersey 101.5 FM Radio

A Push To Bring Jersey's Foreclosures Under Control

New Jersey 101.5 FM Radio — Tuesday, March 30, 2011

David Matthau Reporting

At the end of last year, Jersey Supreme Court Chief Justice Stuart Rabner issued a directive to the six of the biggest mortgage lenders in the country — to demonstrate why, amid widespread reports of irregularities, their foreclosure operations should not be suspended in the Garden state.

Yesterday, a "Special Master" was appointed, to make sure banks comply with the order.

Phyllis Salowe-Kaye, Executive Director of New Jersey Citizen Action, says this is a critically important issue because there are probably "many people who have lost their homes, or are about to lose their homes in an illegal manner- because the lender really doesn't have ownership of the property."

She says lawyers should be forced "to personally certify that they have knowledge that any documentation that's being submitted in a foreclosure to the court is real and accurate."

At the same time, Salowe-Kaye says her group want to make sure "that there are mandatory principal write-downs that lenders are required to do, in order to keep folks in their house...thousands of people are losing their homes every year in New Jersey- for the last 3 years the figures have doubled and tripled...we believe that 60 percent of foreclosures would be stopped if the homebuyer was able to pay a mortgage that reflected the actual market value of their property."

She adds "for many years these lenders have operated in a way where they made a huge amount of money through the servicing of these mortgages — it's now time to turn the tables a bit, and help keep New Jersey residents in their homes."

Listen to David Matthau's report:: To the left, click the "Q" (QuickTime) or   >  to play, or download the 540 KB mp3 file, of this news segment (approximately 1 minute).
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