If your mortgage company refuses payment, it’s important to seek legal advice to understand your options and protect your home. At the Law Office of Ira J. Metrick, Esq., we can help you take legal action or explore loan modifications to avoid foreclosure.
Can a Mortgage Company Refuse My Payment?
Yes, a mortgage company can refuse payment. Normally, once a borrower is 3 payments behind, the lender can require the full amount of the missed payments to be paid in a lump sum.
Why Would a Lender Refuse Payment?
A mortgage lender might reject your mortgage payments because:
- Insufficient or Partial Payments: Once the lender declares default, the amount submitted must include all the missed payments plus late fees and expenses.
- Service Release: when your loan is sold to another servicer, all payments should go to the new lender.
In New Jersey, the law requires the lender to allow you to pay all the arrears and reinstate the loan at any time before a Final Judgment is entered. If you are trying to get current on your mortgage and your lender will not accept your valid payments, contact us today.
My Mortgage Payment Was Rejected. What Now?
If your mortgage payment was rejected, it’s essential to take immediate action to resolve the issue and prevent further complications. Here’s what you should do:
- Contact Your Lender: Reach out to your lender immediately to understand why the payment was rejected.
- Verify the Amount Due: Double-check that your payment covers the full amount, including any late fees or penalties.
- Correct Discrepancies: If there’s an issue with the amount or method of payment, make the necessary adjustments.
- Explore Alternatives: If your loan is in default or foreclosure, ask about options like loan modification, reinstatement, or forbearance.
- Document Everything: Keep records of all communications with your lender and copies of your payment attempts.
By addressing the issue promptly, you can prevent further complications and ensure your mortgage remains in good standing.
My Lender Won’t Accept My Mortgage Payments. What Should I Do?
Issues with your loan or mortgage company can be extremely stressful. If you are behind in payments and your servicer refuses to accept installments, contact our office today to discuss your options. We aggressively fight to defend your home from foreclosure, secure a loan modification, and more. Call now.
