Real Estate Law
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New Jersey law allows a mortgagor to charge up to 5% of the past due payment as a late fee. When a mortgagor charges more than that, the NJ Homeowner's Security Act of 2002 provides that the homeowner may sue for the excess amount charges, punitive damages, plus attorney's fees. Here is a summary of the act:
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The late fee is a percentage of the past due amount, not the total owed on the mortgage.