Citigroup is the latest lender to commit to the government's program to modify second mortgages.
The program is part of the Obama administration's $75 billion loan modification program aimed at helping customers stay in their homes. The second-mortgage modification program offers lenders who made "piggyback" loans — second mortgages that allowed consumers to make a small or no down payment — incentives to lower payments or eliminate the loans entirely.
The program could help relieve some drag in the housing market. Lenders who extend second mortgages — fearing they won't be repaid — can veto a borrower's efforts to modify their primary mortgage.
On March 25, 2010, Bank of America said it will forgive up to 30 percent of some customers' total mortgage balance.
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In April 2009, the lawyers and staff at LLO donated $450.00 to "Payton's Fund" to help support the medical needs of the 18 month old daughter of a NJ policeman who has lost her kidneys and is on dialysis awaiting a transplant. Everyone at LLO wishes gorgeous Payton a speedy and complete recovery!
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LLO Attorney Andrew Liput recently was asked to write an article for the American Bar Association Journal on the topic of reforming the mortgage and real estate closing industry by stengthening standards for settlement agents and improving insurance coverage for lenders and consumers from losses from negligence and fraud. The article is scheduled to be published in April 2009. Mr. Liput has also written an article on the same topic for the Mortgage Press, to be published in May 2009.
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Lately loan modification and debt settlement companies, unlicensed, uninsured and inexperienced, have been preying upon consumers.
New Jersey law strictly limits those professionals who may legally negotiate your debt. Only a licensed debt adjuster or those exempt from the debt adjuster requirements (such as attorneys) may act on your behalf.
A "debt adjuster" is a person who either (a) acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or otherwise altering the terms of payment of any debts of the debtor, or (b) who, to that end, receives money or other property from the debtor, or on behalf of the debtor, for payment to, or distribution among, the creditors of the debtor. [N.J.S.A. 17:16G-1c(1)].
What business may legally engage in loan modifications?
The lender or owner of the loan;
b) The mortgage servicing company, acting as an agent for the loan’s owner;
c) An entity licensed by the Department as a Debt Adjuster under the Debt Adjuster Act; and
d) Other entities that are exempt from Debt Adjuster licensure, as set forth at N.J.S.A. 17:16G-1c(2):
The following persons shall not be deemed debt adjusters: (a) an attorney-at-law of this State who is not principally engaged as a debt adjuster; (b) a person who is a regular, full-time employee of a debtor, and who acts as an adjuster of his employer's debts; (c) a person acting pursuant to any order or judgment of court, or pursuant to authority conferred by any law of this State or the United States; (d) a person who is a creditor of the debtor, or an agent of one or more creditors of the debtor, and whose services in adjusting the debtor's debts are rendered without cost to the debtor; or (e) a person who, at the request of a debtor, arranges for or makes a loan to the debtor, and who, at the authorization of the debtor, acts as an adjuster of the debtor's debts in the disbursement of the proceeds of the loan, without compensation for the services rendered in adjusting those debts.
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In January 2009, Liput Law Offices PC began plans to establish a monthly foodbank in Morris County, New Jersey for the purposes of distributing boxes of food and feeding the hungry in Northern New Jersey. Working with local social workers as well as religious leaders of all faiths, the lawyers and staff at LLO hope to create an outreach ministry funded partially through a portion of the profits earned through law firm revenues. Once the program is successful in New Jersey the Firm hopes to open a center for distribution in NY as well, in Huntington Station, Long Island. Anyone interested in assisting LLO in this endeavor is encouraged to call or email us. You can reach Managing Attorney Andrew Liput at aliput@liputgroup.com .
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Starting in January 2009, Liput Law Offices PC will offer debt negotiation services to assist clients facing severe credit crises as an alternative to bankruptcy. The firm will continue to provide bankruptcy counseling and filings to those clients who need it however attorneys will first attempt to help clients settle debts without the necessity of going through the bankruptcy process to try and limit the negative impact on personal credit. LLO attorney Andrew Hallajian is eager to assist clients who need this new service. He can be reached at 1-973-883-0333 in the Mountain Lakes Office. For more information visit our loan modification website at www.AmericanMortgageHelp.com.
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Managing Attorney Andrew Liput has been a contributing writer to banking and mortgage industry publications for many years. His articles on everything from mortgage fraud to good loan practices have been printed and read throughout the United States. Mr. Liput also has been invited to speak at various conferences on mortgage industry issues, most recently the 2008 Conference on Mortgage Fraud in Las Vegas. Mr. Liput's industry blog, The Liput Group Mortgage Industry and Financial News Blog, is widely read and provides up the minute news and analysis of information affecting banks and consumers. You can access it at www.ciercus.blogs.com.
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