
Fraud By Lender
Your lender may have committed fraud when the loan was made. If fraud is determined, your lender may be liable for triple damages and attorney fees under the New Jersey Consumer Fraud Act. Many cases in which Good Neighbor Solution have raised this defense have resulted in negotiated settlements with the mortgage lenders.
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The foreclosure process becomes even more complex due to lenders' practices of bundling and selling loans as mortgage-backed securities. A lender who writes a mortgage on your home may turn around and sell it, along with the right to foreclose, to another bank, which may then repeat the securitization process again. As lenders sell the mortgages they've written to other financial institutions, it can become difficult to determine who owns what when a buyer stops paying.
