Legal Question in Real Estate Law in New Jersey

I have ha construction loan that was supposed to be converted upon completeion of my new home. To make a long story short I ran out of money and moved into the 3/4 finsihed home in Monroe, NJ. I have been in the house for 2 years and trying to finish the work as I get the funds. My mortage company is threatening to foreclose because I have no certificate of occupancy. Can they do that, I pay my mortgage every month? The town requires a CO but are not presuring me to get one.

Any info would be appreciated.


Asked on 1/04/10, 10:52 am

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Your construction loan probably requires you to proceed diligently to complete construction. If you have not done that, you are probably violating the loan agreement and subject to foreclosure. That said, I am surprised that the creditor would pick now to threaten to foreclose. If you are current with the mortgage, it would not seem to be to their advantage. My intuition is that there is room for negotiation here. Ask your lawyer to call the mortgage company to find out what they really want.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 1/09/10, 5:57 pm


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