Posted Aug 10, 2007 10:45 am CDT
A federal appeals court has cleared up a dispute in New Jersey over how long homeowners have to cure a mortgage default.
Federal district and bankruptcy judges disagreed on the time to cure. Some used the gavel rule, while others found the right to cure extends until the deed is delivered to the winning bidder, the “delivery-of-deed” rule.
Warren Wolf of Cureton Caplan in Mount Laurel, the lawyer for the bank that foreclosed on the property in the case, says the decision could influence courts in states with similar foreclosure laws.