Judge Invokes Time-Bar in Foreclosure Action of Mortgage Company

by San Antonio Attorney

A mortgage company has been barred by a Bergen County judge from taking a foreclosure action, proclaiming that the lawsuit was filed past the statute of limitations.

On July 11, Bergen County Superior Court Judge Edward A. Jerejian ruled that a foreclosure complaint filed by a mortgage company was time-barred because the lawsuit is six years too late from the maturity date stated in the mortgage.  Jerejian also found that the statute of limitations law should extend in scope as it had taken effect in 2009.

According to the defendants’ attorney, Myron D. Milch, the ruling will supply clarification with regards to a problem that has not been tackled by the courts.  Jerejian’s decision sheds light on the law related to statute of limitations.

But Anim Investment’s attorney, Arnold G. Shurkin, will appeal to the judge’s decision.  He said that the law was not applied properly because the statute of limitations should only be applied to legal actions on the mortgage note.

Jerejian said the defendants, George and Kathleen Shalhoub, loaned $178,100 from Mina Investment in September 1990.  They failed to make their first payment that was due in November 1990.

Later on, the mortgage was handed over to Anim Investment, and the firm sued the Shalhoubs in August 2015.  The Shalhoubs claimed the action was unacceptable in reference to the statute of limitations.

The original mortgage agreement stated that that the statute of limitations was 20 years from the date of default.  However, both sides disagreed whether the default date should be enforced as the date of maturity, which was Oct. 1, 1995, or the first default of payment.

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