A New Jersey judge has given the green light for five of six major mortgage servicers to resume uncontested residential foreclosures in the state.
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In December, the New Jersey Supreme Court ordered a formal review of the foreclosure procedures in place at the six servicing shops, which together accounted for nearly half of the state's filings. The companies were charged with proving to the courts that their foreclosure actions should not be suspended after robo-signing infractions came to light.
On Monday, Superior Court Judge Mary Jacobson issued orders stating that ""Bank of America"":http://www.judiciary.state.nj.us/superior/order_bank_of_america.pdf, ""Citibank"":http://www.judiciary.state.nj.us/superior/order_citibank.pdf, ""JPMorgan Chase"":http://www.judiciary.state.nj.us/superior/order_jp_morgan.pdf, and ""Wells Fargo"":http://www.judiciary.state.nj.us/superior/order_wells_fargo.pdf had demonstrated the ""reliability of their processes"" and were granted permission to resume
[COLUMN_BREAK]prosecution of uncontested foreclosures. ""OneWest Bank"":http://www.judiciary.state.nj.us/superior/order_onewest.pdf was granted the go-ahead by Jacobson on Wednesday.
Ally Financial's GMAC Mortgage is the only one of the six that has not yet received the judge's consent. According to the local _Asbury Park Press_, the special master appointed to handle the reviews has not yet submitted the plan for GMAC to the courts.
The servicers were required to provide information proving chain-of-ownership and that they were authorized to act on behalf of any mortgagees other than themselves; demonstrate they had sound record-keeping systems detailing payment history and loan status; detail steps followed in executing affidavits; and describe staff training programs, among other processes supporting foreclosure proceedings.
Judge Jacobson has ordered the servicers to submit to ongoing monitoring by the special master overseeing the reviews to ensure their continued compliance with the state’s foreclosure mandates.
Following the New Jersey Supreme Court’s decision late last year, servicers essentially put the brakes on foreclosure actions in the state. Since the beginning of 2011, just over 6,000 foreclosure filings have surfaced in the state courts. According to the site ""BankForeclosuresSales.com"":http://www.bankforeclosuressale.com, at this time last year 35,000 New Jersey foreclosures had been filed.