NJ High Court: Lenders Could Lose Their Mortgage Priority

Law360, New York (June 20, 2016, 12:34 PM EDT) -- Rodman E. Honecker

Douglas A. Stevinson The New Jersey Supreme Court is considering a case that may have far-reaching ramifications for the lending industry. The specific issue concerns the maintenance of priority of mortgage liens. In Rosenthal & Rosenthal v. Benun, A-2890-13T3 (decided June 17, 2015), the Appellate Division of the New Jersey Superior Court reversed a grant of summary judgment in favor of a lender that held two recorded mortgages and directed the trial court to enter judgment giving priority to the holder of a third mortgage. The Appellate Division held that the law firm Riker Danzig Scherer Hyland & Perretti LLP, which...

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