Help is available to borrowers who have claims against their lenders for violating the Truth in Lending Act and more laws regulating credit transactions. Such violations can be a defense to a mortgage foreclosure. If there exists a violation, you can be able to void the mortgage and apply 100 percent of your payments to principal. You can as well be able to feel better money damages.
If the answer to any of the following questions is "yes," please arrange for a professional auditor to view your loan documents (including demand and collection letters, correspondence, and any account histories or even monthly statements).
one. Have you repeatedly refinanced your loan? Was the last refinance in the last three years? (A common predatory practice is "flipping," which involves "repeatedly refinancing a mortgage loan without advantage to the borrower, sequentially to profits from high origination fees, closing costs, points, prepayment penalties and more charges, steadily eroding the borrower's stock in his or even her home.").
two. Did you increase rather than lower your rate upon refinancing?
three. Are you paying an interest rate in excess of nine.five percent?
four. Was the loan found to pay for home improvement operate that wasn't done properly, or at all?
five. Have you had problems with the mortgage company regarding untimely posting of monthly payments? Sudden increases in payments? Adding numbers to your balance for insurance, "property preservation," or even more "advances"? Does your principal balance never seem to go down?
six. Were you charged high closing costs (points and fees) on the mortgage?
seven. Did the terms of the mortgage change to your detriment at the last microscopic prior to the closing?
eight. Did the lender pay money to your mortgage broker (look on your HUD-1 Award Statement for a "premium" or even POC (paid out of closing) "YSP" or even "yield spread premium")?
nine. If you have an adjustable rate mortgage, were any adjustments done improperly? Can you even tell if the adjustments were correct or even not?
ten. Does your loan contain a prepayment penalty?
eleven. Do you believe you were treated unfairly by your mortgage company? Has correspondence with the mortgage company gone unanswered? (Mortgage corporations have a statutory obligation to respond to complaints and requests for explanations of accounts. Quite often, they do not. Every failure could entitle you to $2,000. If your claim against the mortgage company might exceed the number of monthly payments you allegedly missed, the mortgage company might not be able to prove that you are in default.)
twelve. Did all collection letters sent to you by debt collectors comply with the Fair Debt Collection Practices Act? (Up to $1,000 even more if they didn't.)
thirteen. Did you (or anyone else who has an ownership interest in and lives in the house) receive a "notice of right to cancel" that wasn't entirely filled out?
fourteen. Did you receive your copy of the loan documents at the closing (as opposed to being sent to you later or even did the closing professional send you signed copies at all)?
fifteen. Did you sign a document at the closing stating that you weren't canceling?
sixteen. Did the closing occur by mail, or even at your home, or even in an additional city?
There exists a common assumption (among judges, borrowers, and the public) that mortgage corporations don't want to foreclose and get real estate. This assumption is no longer well founded.
There are an increasing number of "scavengers" that purchase bad debts, including mortgages, for a fraction of face value and attempt to enforce them. Such entities profits by foreclosure. "Mortgage sources confide that a select few unscrupulous lenders are purposely allowing certain borrowers to fall deeper into a financial hole from which they can?t escape.
Why? Because it pushes these consumers into foreclosure, whereupon the lender grabs the home and sells it at a profits." Robert I personally. Heady, The People?south Money, "Foreclosure, You Must Avoid It," South Fl. Sun-Sentinel, Feb. twenty five, 2002. In addition, if the loan is guaranteed (by personal mortgage insurance or even the government), a mortgage company can find it even more profitable to foreclose and produce a claim on the guarantee.
Mr. Kenneth M. DeLashmutt is a recognized Predatory Lending Defense Specialist and an authority on the subject of predatory lending practices, foreclosure defense, consumer protection and debtor?south rights.
He's even more than ten years experience in the area of consumer protection related to predatory mortgage lending practices and debt resolution. He's provided regulatory consulting services nationwide to financial institutions, consumers and regulatory agents as well as real-estate and financial services organizations.
Areas of Expertise include: Banking Operations and Administration; Lending Policies and Laws to Protect Consumers, Mortgage Brokers and Mortgage Lender Predatory Lending Custom & Practice; Credit Administration; Bankruptcy and Foreclosures; Trust & Fiduciary Issues / Operations; Real Estate Transactions; Consumer Protection Litigation and Foreclosure Defense.
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Article source: http://www.topiccenter.com/Finance/Mortgage-Refinance/