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The Truth In Lending Laws

 

If your loan violates Truth in Lending laws, you can hire a foreclosure attorney and appeal to the courts, whether or not your home is facing foreclosure. Making a claim of mortgage fraud is not a far-fetched or unnecessarily litigious act, in part because the law is structured to catch offenders. Home mortgage lenders are held to complex standards that are attainable with due diligence. If lenders trip up, the law is there to catch them.

Attorneys work with the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) to gain court awards and provisions that reduce the costs of credit and other monies paid to banks for your home. These laws require that certain information be presented in certain standard formats to the consumer. Items that are misstated, omitted or otherwise in error within the language in your loan documents are grounds for legal claims.

Why don’t mortgage lenders fight these claims tooth and nail? These companies are in business to sell loans, not houses. Foreclosed properties end up on their books and in their laps, and they must pay to re-market them, losing money every day until they are resold. If you are facing loan default and foreclosure, a bankruptcy attorney can help you exercise your right to rescind, demand loan modifications and sue for damages.

How Truth in Lending Violations Apply to Your Loan

Unlike current federal loan assistance programs, TILA and RESPA requirements apply to mortgages of any amount. Each mortgagee is treated in the same manner, in order to create information disclosure standards that make the wide variety of available loans easy to understand.



Consult with a foreclosure attorney about your concerns, whether they are simple language or format errors, or more serious suspicions of predatory lending. If you are near foreclosure, legal action can be taken quickly.

A lawsuit filed for TILA or RESPA violations in your loan may:
  • Immediately stop foreclosure
  • Delay all mortgage payments pending a court decision
  • Temporarily prohibit action or reports against you by major credit report agencies
The majority of cases never make it to court. Remember, mortgage lenders don’t want homes back on the books. Often attorneys reach settlement agreements before mortgage fraud claims require court decisions and intervention.

The Benefits of a Court or Out-of-Court Settlement

Whichever direction your mortgage loan negotiations take, pursuing the matter puts pressure on lenders to fulfill their duty to consumers under the law. Lenders are well aware of the benefits of both avoiding this obligation and complying with it. Avoiding it and confusing consumers with variable interest calculations and explanatory terms actually makes them money. For instance, if finance charges are not fully disclosed, consumers may be stuck for more than they intended to apply for. Upon signing, after the three-day rescission period, they are legally bound to make payments.

The cost of proven violations of loan laws, however, makes compliance seem more profitable. If a mortgage company doesn’t offer an out-of-court settlement and your case goes before a judge, big-money damages may ensue. You may be awarded double the value of the monetary injury, as well as court costs and attorney fees. New loan provisions can make your payments more affordable, keeping you in your home and the mortgage company in the business of selling credit, not houses. It is important to know what truth in lending means to homeowners.

Real estate laws can vary from state to state so it is important to speak with an attorney who specializes in real estate law before making any hasty decisions.  Whocanisue.com can help you find an experienced foreclosure attorney in your area.
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