Archive for April, 2006

72 Goldfinch Lane West Milford - Adjourned 7/11/2006

31 Mayfair Pl. Clifton - Cancelled

461 East 35th St. Paterson - Adjourned 5/9/2006

105 Albion Ave. Paterson - Sold Read Properties 291K

132 Walker Ave. Wayne - Adjourned 4/25/2006

217 Rosa Parks Blvd. Paterson - Adjourned 5/16/2006

146 Butler St. Paterson - Adjourned 5/9/2006

101 Glenwild Ave. Bloomingdale - Adjourned 5/9/2006

14 Upsala Path West Milford - Sold R Hernandez 300K

211-213 Vernon Ave. Paterson - Cancelled

24 Zeliff Ave. Little Falls - Sold Plaintiff

273 East 6th St. Clifton - Bankruptcy

16 Rosa Parks Blvd. Paterson - Sold Plaintiff

57-59 Prospect St. Clifton - Sold P Fernandez 293K

287 12th Ave. Paterson - Adjourned 4/18/2006

18 Harrison Pl. Clifton - Adjourned 4/25/2006

508 Oak St. Passaic - Adjourned 5/19/2006

53 4th St. Passaic - Adjourned 4/25/2006

110-112 Union Ave. Paterson - Sold Plaintiff

109-111 Keen St. Paterson - Adjourned 4/25/2006

A & P Diversified Technology Realty, Inc. vs. Fleet Bank, N.A.

In a significant blow to lenders, on January 19, 2006 the United States Court of Appeals for the Third Circuit applied the New Jersey Merger Doctrine in holding that a lender who obtained final judgment in a mortgage foreclosure action was not entitled to recover post-judgment attorney’s in a Chapter 7 bankruptcy case. A & P Diversified Technology Realty, Inc. vs. Fleet Bank, N.A., Civil Action No. 04-3622 (3rd Cir. Jan.19, 2006).
Merger Doctrine: Under New Jersey’s Merger Doctrine, a promissory note and related mortgage merge into a resulting foreclosure judgment. A plaintiff bank therefore loses the right to utilize the contract provisions in these documents once the foreclosure judgment is entered. In A & P Diversified., on appeal the Third Circuit reaffirmed the Merger Doctrine in upholding the decision of the lower District Court, which held that upon the entry of a final judgment in mortgage foreclosure, the mortgage agreement and all of its terms, including the covenant requiring the borrower to pay legal fees, merges into the final judgment under the merger doctrine. Specifically, the court concluded that:
Under the merger doctrine, the mortgage and its concomitant attorneys’ fees provision ceased to exist when the judgment was entered. Therefore, when Fleet moved for attorneys’ fees pursuant to section 506(b) before the bankruptcy court, it was no longer the beneficiary of an agreement under which a claim for attorneys’ fees arose, which supplies the foundation for a section 506(b) award.

A & P Diversified, at p. 8-9.
Exception to Merger Doctrine: A prudent lender can avoid the Merger Doctrine by artfully drafting its mortgage documents to provide that the effectiveness of particular post-judgment remedies and provisions will survive the entry of a final foreclosure judgment. In the A & P Diversified case before the Third Circuit, the court specifically concluded that the mortgage did not contain an express provision providing that the debtor’s obligation to pay the mortgagee’s attorneys fees and expenses would survive post-judgment. As a result, the exception did not apply.
Conclusion: The situation faced by the parties in A & P Diversified frequently arises since many homeowners file for bankruptcy protection on the eve of a judicial sheriff’s sale (which is post-judgment). Lenders should review their loan documents to determine whether they contain provisions that expressly preserve their ability to recover attorney’s fees, expenses, advances, or other essential covenants post-judgment in order to avoid the harsh result confronted by the lender in A & P Diversified. If the necessary language is missing, amending the loan documents may be necessary. Also, lenders should consider adding provisions to loan modification and forbearance agreements to amend the underlying loan documents and specifically provide that the parties intend to have the essential contractual provisions survive post-judgment. By the same token, borrowers would be prudent to consult an attorney when presented with loan modification and forbearance agreements so as to avoid unknowingly giving back valuable rights which lenders can use to their advantage.

Glenn R. Reiser

April 6, 2006

530 West Eight Street, Unit 4 Plainfield - No Sale
1280 Oakwood Avenue Hillside - Adjourned 4/19/2006
74 Jefferson Avenue Plainfield - Adjourned 4/19/2006
128 Broadway Elizabeth - Adjourned 4/12/2006
15 Union Avenue Linden - Canceled
109 Thompson Avenue Roselle - Canceled
260 Williamson Avenue Hillside - Adjourned 5/3/2006
1580 Wainwright Street Hillside - Adjourned 5/3/2006
1470 Campbell St. Bld1 Unit G 107 Rahway - Adjourned 4/19/2006
32 Cayuga Road Cranford - Adjourned 4/12/2006
671 Madison Avenue Elizabeth - Adjourned 5/3/2006
1113 Warren Street Roselle - Bankruptcy
1043 Harding Road Elizabeth - Adjourned 5/3/2006
715 Newark Ave, Unit N Elizabeth - Canceled
940 Central Avenue Plainfield - - Adjourned 4/19/2006
170 Silver Avenue Hillside - Adjourned 4/12/2006
504 E.7th St. AKA 504-506 East 7th St. Plainfield - Adjourned 4/19/2006
418D A/K/A 416-18D E. Front St. Plainfield - Adjourned 4/19/2006
40 3rd Street Elizabeth - Sold Plaintiff
10 Farrington St. Union - Canceled
1147 W. 4th Street Plainfield - Bankruptcy
83 East Emerson Avenue Rahway - Adjourned 5/3/2006
190-200 Milton Avenue Rahway - Adjourned 5/3/2006
734-736 Watchung Avenue Plainfield - Sold 3rd Party - $166,100.00
417 Carnegie Street Linden - Adjourned 5/3/2006
103 Conant Street Hillside - Canceled
1207 Thomas Street Hillside - Adjourned 5/10/2006
1741 Edward Terrace Union
273 Donald Avenue Rahway - Adjourned 4/19/2006
921 N E Front Street Plainfield - Adjourned 4/19/2006
601 Clinton Avenue Plainfield - Adjourned 4/19/2006
619 Willow Avenue Roselle Park - Adjourned 5/3/2006
41 Arlene Court Fanwood - Adjourned 4/19/2006
16 West Emerson Avenue Rahway - Canceled
1126 Watchung Avenue Plainfield - Adjourned 5/3/2006
818 Lincoln Street Linden - Adjourned 5/3/2006
959 Carnegie Avenue Plainfield
325 W. Clay Ave. Roselle Park - Adjourned 4/19/2006
544 Broadway Street Elizabeth - Adjourned 5/3/2006

149 S.Barnegat Blvd Barnegat - Adjourned 4/18/2006

32 Burr Street Barnegat - Adjourned 5/9/2006

25 Periwinkle Drive Barnegat - Adjourned 5/9/2006

230 Norty Bay Drive Bayville - Canceled

79 South Ronald Avenue Bayville - Adjourned 4/18/2006

374 Roosevelt Avenue Bayville - Canceled

16 Walnut Street Beachwood - Sold 3rd Party 203K

714 Maple Avenue Brick - Adjourned 4/25/2006

412 N. Lake Shore Drive Brick - Cancelled

340 18th Avenue Brick - Sold Plaintiff

773 Sterling Drive Brick - Canceled

615 Conifer Drive Forked River - Cancelled

130 Aster Court Jackson - Adjourned 5/9/2006

706 Oak Street Lakehurst - Adjourned 4/25/2006

43 Golden Spring Drive Lakewood - Adjourned 5/9/2006

50 Lucy Road Lakewood - Adjourned 7/11/2006

1463 Oak Street Lakewood - Sold 3rd Party 210K

230 Falcon Drive Little Egg Harbor - Sold Plaintiff

1013 Oakdale Street Manchester - Bankruptcy

916 Borden Avenue Point Pleasant - Adjourned 4/25/2006

716 Burnt Taver Road Point Pleasant - Sold 3rd Party 165,500.00

28 Lakeview Drive South Toms River - Cancelled

1464 Whitesville Road Toms River Cancelled

1917 Red Cedar Street Toms River - Adjourned 5/2/2006

711 Opatut Court Toms River - Adjourned 5/2/2006

1981 Whitesville Road Toms River - Adjourned 5/9/2006

639 Longview Drive Toms River - Bankruptcy

11 Ranch Road Toms River - Adjourned 6/6/2006

49 Cardinal Drive Toms River - Adjourned 6/6/2006

1022 Monty Road Toms River - Adjourned 7/11/2006

95 Knolls Rd. Bloomingdale - Adjourned 5/2/2006

54 Rosalie Ave. Clifton - Cancelled

103 West 3rd St. Clifton - Adjourned 6/16/2006

11 Hamil Ct. Clifton - Adjourned 5/9/2006

224 Pompton Rd. Haledon - Adjourned 4/18/2006

63 Summer St. Hawthorne - Adjourned 4/18/2006

166 Mountain Ave. Hawthorne - Cancelled

856 East 24th St. Paterson - Adjourned 4/18/2006

101 Albion Ave. Paterson - Cancelled

3 Pope Rd. Paterson - Adjourned 4/18/2006

233 8th Ave. Paterson - Adjourned 5/2/2006

81 Garfield Ave. Paterson - Adjourned 4/18/2006

255 North 4th St. Paterson - Bankruptcy

401 a/k/a 399-403 River St. Paterson - Adjourned 4/18/2006

239 Rosa Parks Blvd. Paterson - Sold Plaintiff - $100

790 East 19th St. Paterson - Adjourned 4/18/2006

217 Rosa Parks Blvd. Paterson - Adjourned 4/11/2006

105 Park Ave. Paterson - Adjourned 4/18/2006

163-165 Montgomery Pl. Paterson - Adjourned 5/2/2006

149 Edmund Ave. Paterson - Cancelled

86 Genesse Ave. Paterson - Adjourned 4/18/2006

319 East 32nd St. Paterson - Sold W. Reyes - 211K

57 Ramapo Mt. Drive Wanaque - Adjourned 4/18/2006

35 Oakwood Dr. Wayne - Cancelled

342 Hamburg Turnpike, Unit 102 Wayne - Cancelled

14 Upsala Path West Milford - Adjourned 4/11/2006

1 Hewitt Rd. West Milford - Adjourned 6/27/2006

14 Marshall St Paterson - Adjourned 5/9/2006

ForeclosuresMass reports that Massachusetts foreclosure rate has hit a three year high, up 25% over last year.

Foreclosures were filed on 1,200 properties, 25 percent higher than the year before and 63 percent higher than February 2004. Compared to January of this year, foreclosures increased nearly 12 percent, with Middlesex County posting a 29 percent [...]

165 Rosalie Street Maywood - Adjourned Plaintiff 4/21/2006375 Howland Avenue River Edge - Upset 452K - Sold 453K 3rd party
442 Lewandowski Lyndhurst - Adjourned Plaintiff 5/5/2006
351 Liberty Road Englewood - Bankruptcy
6 Pershing Avenue Ridgewood - Adjourned Plaintiff 4/21/2006

128 Oakland Street Englewood - Adjourned Plaintiff 5/5/2006
12 Armory Place Teaneck - Adjourned Court 4/28/2006
81 Beech Street Maywood - Settled

161 Ralph Avenue Wyckoff - Adjourned Plaintiff 4/21/2006
433 8th Street Carlstadt - Sold Plaintiff 2nd Mortagee Bk of America $210K / Upset 1st - 153K
9 Post Road Oakland - Settled
104 Wood Street Garfield - Adjourned Plaintiff 4/21/2006
11 Sisson Terrace Tenafly - Settled
11 Chamin Plz Englewood - Settled
100 Sherman Ave. Teaneck - Adjourned Plaintiff 5/5/2006

139 Dudley Drive Bergenfield - Adjourned Court 4/28/2006
192 Hackensack Street Unit D East Rutheford - Settled

751 Orangeburgh Road River Vale - Settled
205 14th Street Wood Ridge - Adjourned 4/28/2006
114 Lindbergh Blvd Teaneck - Adjourned 4/21/2006
206 Centeral Avenue Hackensack - Adjourned 4/21/2006
460 W. Anderson Street Hackensack - Adjourned Defendant 4/21/2006
326 Dunham Place Glen Rock - Adjourned Defendant 4/28/2006
1-19 Berdan Avenue Fair Lawn - Settled

38 Carnation Street Bergenfield - 1st Chase Man 166K Upset / Upset 76K Judgement / Sold 3rd Party $150K
43 Prospect Avenue Dumont - Adjourned Defendant 4/28/2006

320 Watson Avenue Lyndhurst - Settled

5 Park Row Wallington - Settled

85 Jackson Avenue Rutherford - Adjourned Defendant 5/12/2006

82 Carriage Court Allendale - Adjourned Court 5/8/2006
85 Carnot Ave Woodclife Lake - Adjourned Defendant 5/12/2006
267 Thompson Avenue Englewood - Adjourned Defendant 4/21/2006
104 Jay Avenue Lyndhurst - Adjourned Defendant 5/5/2006
134 Hillsde Ave Teaneck - Adjourned Defendant 4/21/2006
13 Mevan Ave Englewood - Bankruptcy
1140 Congress Avenue Teaneck - Upset 209K / Sold $292K 3rd party
401 Montross Ave Rutherford - Returned to court

7 Skyline Drive Jersey City - Adjourned 4/20/2006
62 Prospect Terrace Bayonne - Sold M Eljaz & Seeranie Seewah - 281K
153 West 18th Street Bayonne - Adjourned 4/20/2006
4500 Smith Street North Bergen - Adjourned 6/29/2006
86 Harmon Street Jersey City - Bankruptcy

308 Stegman Parkway Jersey City - Settled
167 Winfield Avenue Jersey City -Settled
12 Freedom Place Jersey City - Sold Wells Fargo National Bank - 211,100.00
123 North Third Street Harrison - Adjourned 4/6/2006
155 Lembeck Avenue Jersey City - Settled
217 1/2 5th Street Jersey City - Adjourned 4/20/2006

Illinois Attorney General Lisa Madigan filed a lawsuit Wednesday against a company that claims to help homeowners facing bankruptcy, but which, the state claims, has actually stolen the homes and equity of many homeowners in trouble.

“We’re looking at con artists. What they are doing is one of the evilest cons I’ve ever seen,” said Illinois [...]