NJ Appeals Panel Backs Refi Lender's Priority In Default Row

Law360, New York (July 3, 2013, 3:59 PM EDT) -- A New Jersey appeals court ruled Wednesday that a junior lienholder that had extended a line of credit to a borrower cannot vault over the priority of a mortgage refinancing lender after the borrower defaulted on both funding sources, based on equitable principles.

A three-judge panel of the New Jersey Superior Court Appellate Division reversed a trial court’s decision in a foreclosure action allowing junior lienholder Sovereign Bank NA, which was assigned the mortgage on the line of credit extended by Independence Community Bank, to jump...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.