A New Jersey man facing foreclosure decided to fight his mortgage lender in an effort to keep his home. Recently, the judge decided that the lender was not entitled to proceed with the foreclosure because it waited too long to pursue an action to collect the mortgage debt. The statute of limitations to bring an action for foreclosure is six years.
The judge's ruling means that the man is entitled to keep his home, and the $520,000 mortgage loan was nullified. Therefore, he now owns his home free and clear. This may be the first case in New Jersey of a court voiding a mortgage loan based on the statute of limitations. It is not yet known whether the mortgage holder will appeal the court's decision.