Many homeowners in New Jersey have felt the stress of keeping up with mortgage payments. This may be especially true for people who are struggling to keep or find a job and those who have significant expenses like medical bills to consider as well.

The financial strain that many families are feeling means that it is not uncommon for people to end up facing the possibility of losing their home. In fact, we often read stories in the news about people who lose their home in foreclosure for missing mortgage payments. However, one recent story shows how it is possible for a house to go into foreclosure even when a homeowner has never missed a payment.

The story involves a man who had done everything he could to avoid missing any mortgage payments. His lender approached the man and asked him if he would like to participate in a mortgage modification plan which would require him to make four monthly payments. At the completion of these four months, the man was told the plan would be permanent.

According to sources, the man made every payment in full and before the deadline. In some cases, he even ended up overpaying or sending payments a little early. After months of full and on-time payments, the man was understandably shocked to learn that his home was in foreclosure.

Wells Fargo, the man’s lender, had apparently stopped accepting the man’s payments because they reportedly did not meet the rigid and specific guidelines for payment. The man was being penalized for making payments early.

The bank has responded that they will work with the man to figure out a solution to this problem, but this story highlights a serious issue that many homeowners come up against. Banks have used purposefully misleading and confusing terms in mortgage agreements that all but ensure a person will not be able to meet the loan requirements. In these cases, homeowners can work with an attorney who can help them stop a foreclosure and make modifications to a mortgage than are more beneficial for the homeowner.

Source: The Huffington Post, “Etienne Syldor, Orlando Man, Faces Foreclosure Despite Claims He Paid His Loan In Excess, And Early,” Ryan Grenoble, May 26, 2013