If you are late on paying your monthly mortgage payments, most loans allow your lender to charge late fees, however, rules that allow late fees on mortgage payments don’t apply when homeowners are already under foreclosure.
New Jersey has certain laws in place that prevent banks and lenders from charging late fees for mortgage payments when a home is in foreclosure. If you are a NJ homeowner who has been charged late fees after receiving the Notice of Intent (NOI) to foreclose from your lender, then you may be able to challenge the fees and extra costs.
Disputing your lender’s unlawful late fees during foreclosure can be a complicated process, not to mention all the necessary paperwork you need to prove it. A foreclosure lawyer may be able to make this process easier on you by helping you sort through documents and negotiating with your lender so you don’t have to do it alone.
It should also come as no surprise small mistakes like charging late fees may also be a sign that your lender is making bigger mistakes during foreclosure. If your lender charged you a late fee during the foreclosure process, it may help you uncover RESPA violations during the foreclosure process that could save your home.
Charged late fees after your home went into foreclosure? Call our mortgage attorneys to learn about your options in a free consultation. These kinds of violations can stop foreclosure.
Late Fees During Foreclosure
Mortgage servicers are allowed to charge late fees on defaulted mortgage payments up until the servicer files the official Complaint, or NOI, to foreclose. All past late fees before the NOI was filed will be included in the foreclosure complaint.
If you are charged any more late fees after what is already listed on the Complaint, you may have the right to dispute the charges with your lender. The Complaint is a very important document to hold on to, especially if you suspect your lender is charging you late fees during foreclosure.
Keeping track of important documentation, like the NOI, could make a difference in the case against your mortgage lender.
Normal Fees During Foreclosure
Mortgage servicers can’t charge late fees after they’ve filed the Complaint, but that doesn’t mean what you owe before foreclosure will be the total amount. There are a lot of foreclosure fees and costs that can add up to make foreclosure costly.
You may be responsible for your servicer’s attorney fees, your own attorney fees, and any costs required to serve you the Complaint. Depending on your situation, you could also be charged by your servicer for home inspections or property preservation costs for repairs or maintenance to the home.
There are rules about how and when mortgage servicers can charge you fees in foreclosure, but that doesn’t mean that foreclosure isn’t expensive. The fees related to foreclosure cases can quickly add up and become costly.
What You Should Do If Your Lender Is Still Charging Late Fees After Filing The Complaint
If your lender is still charging late fees on your mortgage after filing the NOI to foreclose on your property, then your homeowner rights have likely been harmed, and you should speak with an experienced foreclosure defense attorney right away.
Every year, unsuspecting homeowners are bombarded with unlawful late fees from their lenders while under foreclosure. With a foreclosure defense attorney, you can have a sense of peace knowing your rights are being defended by a trusted lawyer who has your best interests in mind.
A lawyer can also help you better understand your homeowner rights and what options you may have during foreclosure.
Work With A Foreclosure Defense Attorney
A foreclosure defense attorney may be able to help you backtrack important documents and identify any wrong doing done by your mortgage company. You may even be able to delay or stop foreclosure proceedings altogether if your lender has harmed your homeowner rights.
The best way to tell if your lender has damaged your rights is to speak with a foreclosure attorney. Call today to schedule a free initial consultation to discuss what options you may have if your lender is charging you additional late fees during foreclosure.
