Loans – Know Your Rights

Know your Rights for Loans

When applying for loans, you should know your rights.  Your rights are protected when applying for loans.

Loan Modifications through the Home Affordable Mortgage Program (HAMP) have expired.    This was a great program for Debtors.  No matter what type of loans you apply, you should know your rights as a debtor.

At times even though there are regulations for these programs, banks do not follow the rules.   The government has specific rules and regulations for loans.   You need to know your rights.

Here is an example showing that Ocwen did not follow the rules and regulations set in place.  For this reason, it is important for you to seek a lawyer not only when you file a Chapter 7 Bankruptcy, but when you are looking for loan modifications.


  • A home loan was acquired through a divorce
  • The wife remained in the home after divorce.
  • The wife had previously filed for a Chapter 7 bankruptcy
  • Ocwen did not allow her to apply for a loan modification.
  • Before assuming the mortgage, wife applied for a loan modification from Ocwen Loan Servicing.
  • Debtor participated in good faith to apply for the loan modification.
  • Ocwen presented that the Debtor was not acting in good faith since she did not want to assume the mortgage before applying for a loan modification.

In this case, the wife was relying on what the lender told her.   She did not know her rights when applying for loans.

Court Decision

  • Debtor was able to negotiate the modification on a mortgage loan for her home even though she was not obligated on the loan.
  • Judge gave Ocwen the benefit of the doubt in not understanding the HAMP guidelines and did not fine Ocwen.
  • Wife was most definitely able to apply for a loan modification
  • Wife was not required to assume the loan before the application or during the application process.
  • It was not mandatory to assume the debt before Ocwen gave a final answer on the loan modification.
  • Court protected the Debtor’s Rights relating to this loan.

Know your rights when applying for loans.   Seek the guidance of a Certified Bankruptcy Attorney.

I am Board Certified in NJ Bankruptcy Law.    When you need debt relief, apply for loans or need guidance in debt relief, I am here to help you,  I will protect your rights.

Call me today for a free consultation.    Ralph A. Ferro, Jr., Esq.