Fazzio Law / The law beyond the headlines
Legal Breakdown
What happened. Why it matters.
Court decisions, bank oversight, and mortgage and real-estate news — explained through the questions that matter to property owners.
THE OCTOBER BRIEFING / Updated October 3, 2026
01 / Court Watch
Who keeps the equity after a tax foreclosure?
The New Jersey Supreme Court heard Lynette Johnson v. City of East Orange on September 23. The case asks whether an owner may pursue just compensation for surplus equity retained after a tax foreclosure that occurred before the U.S. Supreme Court’s 2023 Tyler decision, when the claim falls within the relevant limitations period.
New York · Decision issued September 30, 2026
A default can block the defense you want to raise.
In U.S. Bank Trust, N.A. v. Aprile, the Second Department affirmed the denial of relief from an earlier order allowing service by publication and appointing a guardian ad litem. The borrower did not establish a reasonable excuse for the default or a basis for relief in the interest of justice. Because the default remained in place, the borrower could not assert a statute-of-limitations defense.
The practical point: A potentially significant defense does not eliminate the need to address the procedural posture of the case. This ruling turns on its record and New York procedure.
02 / Market Watch · August 2026 data
The national trend is not the whole New Jersey story.
About 13% above August 2025
About 22% below August 2025
17th-highest state foreclosure rate
ATTOM’s August figures show national activity rising year over year while New Jersey filings declined. Foreclosure filings include default notices, scheduled auctions, and bank repossessions; they do not all represent completed sales or homes lost.
Published September 18, 2026. ATTOM state analysis ↗August state table (PDF) ↗
03 / Property & Finance
A postponed auction is time, not a resolution.
Signorello Estate’s October 2 auction was postponed to October 16 at 1:30 p.m. at the beneficiary’s request, the San Francisco Chronicle reports. A new sale date provides time; it does not establish that the debt is resolved. This commercial-property story illustrates the distinction between a postponement and a negotiated settlement.
Showboat foreclosure suit puts commercial debt in focus.
NJ.com reports that Computershare Trust Company filed a foreclosure complaint involving Atlantic City’s Showboat Hotel, alleging $13.6 million in debt and missed payments. A complaint states the lender’s claims; it is not a final judgment or a completed sale.
The distinction: Reporting on a lawsuit should identify its stage before drawing conclusions about who owns or controls the property.
From our analysis archive
Pung v. Isabella County
Our published examination of tax foreclosure and the questions surrounding a homeowner’s equity.
Read our September 25 analysis →