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New Jersey homeowner led in circles by mortgage lender

On Behalf of | Sep 8, 2011 | Foreclosure |

It’s tough to keep your house in New Jersey when you are experiencing financial difficulty and cannot seem to get the bank’s attention. Many New Jersey homeowners are wallowing in debt and depend on mortgage modifications to stop foreclosure.

However, banks are inundated with mortgage defaults and cannot seem keep up with the paperwork and the collateral requests to work out new deals. This causes a major headache for homeowners who have done nothing wrong.

One such New Jersey homeowner, a real estate broker, watched his commission checks dwindle when the housing market crashed in 2008. Always persistent to pay his mortgage on time, he finally asked Bank of America (BOA) for a modification in December of 2009, even though he had yet to miss a payment. They didn’t answer for months, but he remained patient.

Eventually, the bank told the real estate broker the he should intentionally miss some payments to qualify for the modification program, now familiar request by lenders. But the real estate broker refused, sensing it could get him into trouble, and the time continued to pass.

Months later, the real estate broker received a letter from BOA saying he was two months behind on his payments, even though he had not missed a single one. He called BOA, saying that he had all of his bank statement to prove that he had paid. BOA said that they would look into it and get back to him in ten days.

Three weeks later, BOA called and told the man that he had been approved for a temporary reduction, but apparently no one had told him. They promised a full modification had now been approved, and the paperwork would arrive in 10 days. But instead of the paperwork, the man received another letter stating his loan was past due.

The process has continued back and forth, to the point where the man does not know if he is getting the modification or not, and all the while he has continued to make the payments. Sadly, this man is not the only homeowner in New Jersey enduring such a frustrating process with a mortgage lender.

A New Jersey attorney devoted to helping people with financial difficulties may be able to help stop foreclosure or achieve a loan modification, saving homeowners from a long struggle.

Source: The New Jersey Local News, “Homeowner says Bank of America foreclosure notice doesn’t add up,” Karin Price Mueller, Aug. 22, 2011

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