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Does acceptance of late payments equal a loan modification or waiver of rights?

Published On: December 4th, 2012 | Author: Perry Law, P.C. | Category: Civil Litigation Creditors' Rights Real Estate and Title

This is an often litigated issue with significant ramifications.  The Superior Court of New Jersey recently become one of a long line of courts to address this issue.  In that case (Bank of America v. Princeton Park) the Court found that the acceptance of late payments did not equal a loan modification or waiver of rights.  The Court, in particular, gave weight to the contractual terms that any modifications needed to be in writing and signed by both parties.  Furthermore, the bank accepted the late payments with the warning that this did waive its rights.