EXCLUSIVE Legal Blog: ‘RHONJ’ Joe And Teresa Giudice Avoid Foreclosure, Find Out How
A man’s home is his castle. Despite the fact that “The Real Housewives of New Jersey’s,” Teresa Giudice, is serving a 15-month prison sentence for fraud, her husband can sleep soundly in an oversized manse now that the foreclosure action filed by Community Bank of Bergen County has been resolved.
The Bravo duo’s Towaco, New Jersey home is out of foreclosure, and the mortgage is now current, explains Teresa’s lawyer, James J. Leonard Jr. to PEOPLE. “Like a lot of people, the Giudices had fallen behind on their mortgage payments, which then puts the home into foreclosure as a way to protect the bank,” Leonard told PEOPLE.
Foreclosures had been declining steadily for the past several years, but more than 6 million homes were lost since 2008, notes CNBC. Reports claim, Teresa and Joe were able to pay back the money owed in full and the home is no longer under the threat of foreclosure.
If borrowers can catch up on their mortgage payments before the actual sheriff’s sale, the foreclosure stops. Typically borrowers have to pay the amount owed on the mortgage payments as well as court costs and reasonable attorney’s fees of the lender. The lender will usually not accept payments unless the borrower catches up on their payments completely.
An Oct. 22 filing from mortgage holder Community Bank of Bergen County confirms that the home is not being foreclosed. “The Defendant has reinstated the mortgage and therefore the foreclosure is hereby settled.” Teresa and Joe, who lost their beach house through foreclosure a few months ago, are still responsible for future mortgage payments on their Towaco property.
The deed holding bank, Community Bank of Bergen County, filed a foreclosure complaint earlier this year in Superior Court of New Jersey, Chancery Division, seeking to recoup their losses. The bank claimed that the reality couple defaulted on their mortgage on Dec. 1, 2014 by failing to pay their $10,679.38 monthly note.
The bottom line is lenders like Community Bank of Bergen County understand that foreclosed homes ravage a community, and drive down the value of other homes. The Giudices perhaps paid off the loan in full by refinancing (with a family member cosigning) or by a friend or relative bailing them out in exchange for equity or some other financial arrangement. One thing we know for sure: It is unclear what the current inmate at the Federal Correctional Institution in Danbury, Connecticut did to get caught up on loan payments. What is your best guess?
READ: Teresa Giudice Did Not Rob Banks Only; List of Other Businesses She Stole From
The home that was the subject of foreclosure proceedings was purchased in 2002 for $530,000. The Giudices erected a 16-room, 10,044-square-foot residence that served as the setting for opulent dinner parties and a flashy housewarming fête that aired on Bravo. Listing details from 2014 show a total of six bedrooms and six bathrooms with a stately porte-cochère the likes of which the Real Housewives of Orange County’s Heather Dubrow might envy.
The mortgage may now be current and Joe and Teresa could be in good standing with the loan but they will be responsible for continued payments to the federal government and to the banks.
“Losing the family home was never an option. Teresa made that very clear to me,” attorney James Leonard told PEOPLE. Then why did Bravo’s most infamous table flipper list her Montville Township mansion for $3.99 million last year? They also dropped the price twice. Their real estate agent told a publication that he planned to aggressively market the property to high net worth clients. Are those the actions of someone who didn’t want to lose her family home?
READ: The Next Steps in Bank Foreclosure Action For Teresa & Joe Giudice [Legal Blog]
Additionally, it was just over a month ago that we reported on Judge Stephan C. Hansbury’s decision to grant the mortgage holder’s motion for summary judgment. “Even a cursory examination of the Answer shows that Defendants’ denials and alleged defense have no basis in fact or law and are meant only to delay the proceedings.”
The Giudices fought the foreclosure action in court but lost. Teresa and Joe’s answer to the complaint did not contain sufficient reasons or circumstances as to why they were not responsible for any loss claimed by the lender, Community Bank of Bergen County.
The Superior Court judge rejected the Giudices’ attempt to contest foreclosure on their Towaco, New Jersey mansion and granted summary judgment in favor of the mortgage holders. Since the Giudices argued that the lender was not legally entitled to foreclose on their property, and the court found against them, a judgment in favor of the bank would have been entered, giving the bank the right to sell Teresa and Joe’s Indian Lane home. Finding a way to avoid foreclosure was certainly a highly urgent matter for the Giudices.
Another crucial issue is how did Teresa and Joe wind up saving the home before they were done paying down the debt owed to creditors and victims of their crimes? U.S. federal court judge Esther Salas ordered the Giudices to pay $414,588.90 in restitution, and in addition Joe owes $224,211 in back taxes. James Leonard asserted on “Teresa Checks In” that they are up to date on their payments. Is the Giudices’ sprawling 10,000-square-foot New Jersey stone and stucco castle realistically a space that they can keep up to date on mortgage payments? Do they have a sound understanding of what caused them previously to fall behind on payments, forcing the property into foreclosure?
On Live! With Kelly and Michael, Andy Cohen revealed that he and Teresa email each other while she remains behind bars “a lot.” No doubt the host of Watch What Happens Live is trying to keep the cookbook author’s name in the headlines so that advertisers see value in Bravo’s election to feature Teresa Giudice on Season Seven of the Real Housewives of New Jersey. But are Andy’s overtures in vain? One popular aspect of reality TV is a desire to see real status, prestige, wealth, and influence.
Does Teresa still have skin in that game? Grab your gavel, join the conversation, and let us know what you think about Teresa and Joe’s latest legal maneuvers.
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Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.