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Bank’s Failure to Comply With HAMP Trial Plan and Offer a Permanent Modification is Basis for Suit

In Arias v. Elite Mortgage Group, Inc., 2015 N.J. Super. LEXIS 13 (App. Div., Jan. 23, 2015), the Appellate Division addressed for the first time whether borrowers completing a Trial Payment Plan under the federal Home Affordable Mortgage Program (“HAMP”) have a cause of action for Breach of Contract or under the New Jersey Consumer Fraud Act (“CFA”) claim against the bank when the promised Permanent Modification is not offered after the trial period payments are made by the borrower.

Joshua Denbeaux, Esq.,Joshua Denbeaux, Esq. , on HAMP "the servicing industry is not going to be permitted in New Jersey to breach contracts and make false inducement promises to New Jersey homeowners without the court stepping in and protecting its citizens."

Joshua Denbeaux, Esq. , on HAMP “the servicing industry is not going to be permitted in New Jersey to breach contracts and make false inducement promises to New Jersey homeowners without the court stepping in and protecting its citizens.”

Joshua Denbeaux of Denbeaux & Denbeaux in Westwood, N.J., whose chief area of practice is mortgage foreclosure defense said he saw the decision as the Appellate Division “announcing to the world that the servicing industry is not going to be permitted in New Jersey to breach contracts and make false inducement promises to New Jersey homeowners without the court stepping in and protecting its citizens.”

We have successfully fought against foreclosure and collection actions, obtained loan modifications and/or obtained other relief for our clients from banks and loan servicers including: Wells Fargo, Bank of America, Nationstar, Ocwen, Fannie Mae, Ditech Greentree Servcing, Countrywide, and more.



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Formed in 1989, Denbeaux & Denbeaux is a law firm dedicated to providing top level legal representation to its clients. The partners, Marcia Denbeaux and Joshua Denbeaux, as well as senior and associate attorneys, represent individuals and businesses in New Jersey State and Federal Courts.