When working with your lenders,  you should know your rights.  Your rights are protected against lenders that do not follow the rules.   

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.

Before you decide on a loan modification, a Chapter 13 Bankruptcy may be a better financial option.

For this reason, it is important for you to seek a bankruptcy lawyer to determine your options.   Chapter 13 Bankruptcy could be an option for you to stay in your home.

As a board certified bankruptcy attorney, I always follow and research bankruptcy cases.   I found the following  interesting case when a lender did not follow the rules.   

Ocwen did not follow the rules and regulations set in place. 

Background:

• 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.

Loans Know Your Rights –

• Seek the guidance of a Certified Bankruptcy Attorney.

If you are in a Chapter 13 Bankruptcy, we can look into whether a loan modification would be an option.

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

Ralph A. Ferro, Jr., Esq. Law Firm:    Protects your rights with Bankruptcy Protection.

If you are struggling with debt, especially in meeting your mortgage payments or have fallen behind in your mortgage payments, seek guidance.   

Loans — Know your Rights

I work for debtors and for the rights of debtors.   Do not rely on lenders to make the choices for you.   I will meet with you so that we can come up with a plan that is best for you.    Bankruptcy may be an option for your particular case.

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