• Third Circuit Upholds Mortgage Foreclosure Over Borrower’s Negligence Claims against Lender
  • April 26, 2017 | Author: Lydia C. Stefanowicz
  • Law Firm: Greenbaum, Rowe, Smith & Davis LLP - Woodbridge Office
  • Every recession spurs a new wave of lender liability claims in defense of foreclosure actions, and the Great Recession was no different. In September of 2008, a Princeton, New Jersey homeowner obtained a $1.5 million construction loan from Bank of America to finance a home renovation. The construction loan agreement called for disbursements during construction based upon successful inspections of the project, but expressly disclaimed any obligation on the lender¿s part to supervise the construction or conduct the inspections for the benefit of the borrower.