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On June 6, 2017, the New Jersey Appellate Division was asked to determine whether a lender's assignee that takes possession of a condominium unit when the owner/mortgagor has defaulted on the loan, and thereafter winterizes the unit and changes the locks, is considered a “mortgagee in possession” of that unit, and therefore responsible for the payment of condominium fees and assessments.

The court concluded that those discrete actions are not sufficient to render the lender's assignee a mortgagee in possession of the unit and offered guidance as to what specifically constitutes a "mortgage in possession."

You can read the decision here.

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