N.J. court blocks foreclosure over lack of documentation
The mishandling of mortgage records has thwarted another attempted foreclosure in New Jersey, and this time the case has multibillion-dollar implications for a major lender. In U.S. Bankruptcy Court in Camden, Chief Judge Judith Wizmer rejected an attempt by failed lender Countrywide Home Loans, now a part of Bank of America, to foreclose on a Haddon Heights property. The problem, as Wizmer pointed out in her opinion, is that Countrywide, one of the firms at the center of the subprime mortgage scandal, represented that it had sold the mortgage to the Bank of New York and was acting as the loan servicer. But Countrywide never gave Bank of New York the original document or an allonge, an attachment for endorsing the transaction, the judge said.