Trenton, NJ – A federal magistrate judge has vacated default against two companies tied to an Ocean Grove foreclosure case, giving them another chance to fight claims brought by the Federal National Mortgage Association (Fannie Mae).
The case stems from a June 2023 foreclosure action filed by Fannie Mae against Ocean Grove NJ LLC, Ocean Grove Operating LLC, and Sage Home Management LLC. The suit alleged the defendants failed to make payments on a mortgage and related loan documents.
While Ocean Grove NJ LLC responded early in the case, even consenting to the appointment of a receiver, both Ocean Grove Operating and Sage failed to appear or answer the complaint. The clerk of court entered default against them in March 2024, and Fannie Mae moved for default judgment later that year.
It wasn’t until the default judgment motion was filed that Ocean Grove Operating and Sage actively responded, opposing the request and moving in February 2025 to vacate the default.
In a ruling issued by U.S. Magistrate Judge Tonianne J. Bongiovanni, the court found sufficient cause to set aside the earlier default, citing the standard under Federal Rule of Civil Procedure 55(c), which allows default to be lifted if good cause is shown. The judge weighed factors including prejudice to the plaintiff, the existence of a potential defense, and whether the default resulted from culpable conduct.
The decision clears the way for Ocean Grove Operating and Sage to formally defend themselves against Fannie Mae’s foreclosure claims.
The foreclosure battle in Ocean Grove, once seemingly headed for a default judgment, now returns to open court.
