Tactic can delay N.J. foreclosures

June 25, 2008 6:12:14 AM PDT
Some lawyers in New Jersey have found a way to stall foreclosures.

Using a federal court ruling from Ohio, they've gotten orders overturned or dismissed in Passaic, Essex, Monmouth and Ocean counties.

The attorneys are arguing that lending institutions can't always prove that they own the debt they're trying to collect. The lawyers say the formation of mortgage-backed security created a situation in which banks failed to maintain the paperwork.

But attorney Ralph Casale tells The Star-Ledger of Newark those lawyers are trying to grasp on the smallest legal issue. Casale says it comes down to were you given the loan and have you paid it?

There were 34,457 foreclosures in New Jersey last year.

Information from: The Star-Ledger, http://www.nj.com/starledger