New Jersey Lenders CANNOT Charge Late Fees During Foreclosure
Once your lender has filed a foreclosure complaint, they can no longer charge or collect any new late fees for missed payments that were due after the complaint has been filed. By initiating foreclosure, your lender is accelerating the payment of the debt and denying you the right to continue making your monthly mortgage payments, so no additional late fees can be charged or collected.
Several lenders, including Rushmore, are continuing to charge late fees after the foreclosure complaint has been filed. This is a violation of the law.
Are Past Late Fees Included in the Foreclosure Complaint?
Your lender is only allowed to include fees and costs in the foreclosure complaint that have actually occurred. In other words, late fees that were due prior to the foreclosure complaint are still due and included as part of the total amount owed. However, no new late fees or other costs can be charged or collected once the complaint is filed.
My Lender Filed a Foreclosure Complaint, But is Still Charging Late Fees. What Should I Do?
If your lender is still charging you late fees after the foreclosure complaint has been filed, contact the law office of Ira J. Metrick today. This is a violation of your rights as a borrower and we can bring action against your lender. We can also help you understand your rights and options during foreclosure, and help you apply for a loan modification.