Friday, December 2, 2022

Can I Sue A Mortgage Company

Don't Miss

How Do I Report Unfair Banking Practices

“Can I really sue my mortgage company for violating RESPA?”

How to File a Complaint Against Your BankStep 1: Escalate Your Complaint at Your Bank Itself. Before reporting your bank to any agency, you should attempt to resolve the complaint with the bank itself. Step 2: Report the Bank to the Federal Reserve. Step 3: Find Your Banks Regulatory Agency.Jun 12, 2020

How To Write A Notice Of Error Or Request For Information Letter

You can find a sample notice of error letter and request for information letter, along with useful information about what to include in the letter, at the Consumer Financial Protection Bureau’s website.

If you’re sending a notice of error and also want to request specific information, you can send a single letter. Or you can send your notice of error and request for information letters separately.

If You Suspect Discrimination

Take action if you think youve been discriminated against.

  • Complain to the lender. Sometimes you can persuade the lender to reconsider your application.
  • Check with your state Attorney Generals office to see if the creditor violated state laws: Many states have their own equal credit opportunity laws.
  • Consider suing the lender in federal district court. If you win, you can recover your actual damages and be awarded punitive damages if the court finds that the lenders conduct was willful. You also may recover reasonable lawyers fees and court costs. Or you might consider finding other people with the same claim, and get together to file a class action suit.
  • Report any violations to the appropriate government agency. If your mortgage application is denied, the lender must give you the name and address of the agency to contact.

You can file a complaint regarding a violation of the ECOA with the Consumer Financial Protection Bureau. You can file a complaint regarding a violation of the FHA with the U.S. Department of Housing and Urban Development .

For ECOA violations:

For details about the Fair Housing Act, contact the Office of Fair Housing and Equal Opportunity.

Also Check: What Is Wells Fargo Current Mortgage Rates

Can I Sue A Mortgage Broker And Company For Negligence

You may have a case, but the issue will be whether it will be worth pursuing for you. Lawyers, legal fees, court costs, and your time can be expensive and you may decide that it’s not worth the hassle. Besides, except for the earnest money and inspection and appraisal, what are your damages that you think you should be entitled to? You should meet with an attorney and think long and hard about whether you actually think this particular case is worth pursuing

Can You Sue A Mortgage Lender For Negligence

" Can I really sue my mortgage company for violating RESPA?"

As mentioned above, if your mortgage lender commits negligence, you may sue your mortgage lender. Examples of this can include where they negligently fail to include terms in the loan agreement that were agreed to by both parties, or if they breach their fiduciary duties. Additionally, you may be able to sue your mortgage lender if they or one of their officers negligently made false representations in order to induce you into making an otherwise unreasonable loan.

Recommended Reading: Does Getting Pre Approved For Mortgage Hurt Credit

Technical Defaults Improper Default Notices

Todays commercial loan documents often contain 1000 or more pages. If the loan is part of a securitized portfolio , the pooling and servicing agreements are often over 600 pages.

Contained in the fine print are hundreds of clauses, usually always drafted in favor of the bank and against the borrower. It is entirely possible to be commit numerous defaults even though no payments, taxes or insurance payments were ever late.

Some lenders encourage borrowers to default simply so the loan can be transferred into special servicing. There is usually a promise that better terms can be negotiated once a loan is in default.

Unfortunately, some lenders and servicers use negotiated or technical defaults as a way of acquiring the property for their own portfolio or generating millions of dollars in default interest and fees.

There is good news for borrowers, however. Courts can readily distinguish between a payment default and a technical default. With the proper lawyer, it is possible to hold banks responsible for bad faith foreclosures or acceleration demands, especially when an alleged default by a borrower is not material.

If you feel backed against a wall, give us a call. We can help even the playing field and even turn the tide against aggressive lenders.

Should I Hire An Attorney If I Have A Mortgage Lender Dispute

As can be seen, there are many disputes that may arise with a mortgage lender during the process of purchasing a home. Further, the real estate process is often a complicated process involving numerous parties. Therefore, it may be in your best interests to seek out a well qualified and experienced mortgage attorney to help guide you through the process of obtaining a mortgage and purchasing a home.

An experienced mortgage attorney can help you review loan documents, assist you in contract negotiations, as well as represent and file a legal claim on your behalf against the mortgage lender, should any disputes arise.

  • No fee to present your case
  • Choose from lawyers in your area
  • A 100% confidential service

You May Like: How To Shorten A 15 Year Mortgage

Can I Sue My Mortgage Company For Stress In Small Claims Court

When mortgage companies fail to live up to their responsibilities, or worse, try to take advantage of you, the stress can be overwhelming. According to the National Institute of Mental Health, stress causes a host of medical problems, including heart disease, diabetes, and high blood pressure. Medical treatment is expensive and can result in a reduced quality of life.

If you are experiencing stress due to the actions of your mortgage company, you may be able to sue them for stress in small claims court.

In this article, we discuss:

  • Reasons to file a lawsuit against your mortgage company
  • How to file a lawsuit against your mortgage company
  • Issues that may arise if you file a lawsuit by yourself
  • How to use DoNotPay to file your lawsuit against your mortgage company

Ok So My Mortgage Company Is A Debt Collector Under The Fdcpa What Good Does That Do Me

“What if I sue my mortgage company but it still forecloses against me?”

This has a number of beneficial meanings:

  • The FDCPA is, for the most part, a strict liability statute which means if your debt collector mortgage company violates the law, you have a legitimate lawsuit against it
  • Many of the favorite defenses of mortgage companies such as the Statute of Frauds have no meaning under the FDCPA because they are Alabama state law defenses. The FDCPA is a federal law and so it does not care about Alabama defenses
  • The FDCPA can award you statutory damages even if the violation of the law did not harm you
  • You can get compensated for the harm caused by the mortgage company think of what a wrongful foreclosure will do to someone the harm it will cause and
  • The mortgage company can be forced to pay your attorneys over $400 per hour for representing you this is very motivating to them to fix the problem and settle the case with you.

Read Also: What Mortgage Can I Afford Based On Salary

Avoiding Stress During Mortgage Process: Will Bad Credit Affect Mortgage Process

Not everybody had perfect credit all their life. Many people got hurt from theGreat Recession And Real Estate Meltdown of 2008 . Millions of hard-working Americans lost their jobs, lost their businesses, filed for bankruptcy, had foreclosures. A large percentage of Americans lost all of their life savings. Many who retired were forced out of retirement and sought other jobs after the real estate meltdown.

Millions of homeowners and property owners who owned investment properties with substantial equity in their properties lost it all, literally overnight. Many Americans who had professional careers making over six figures a year found themselves unemployed and not marketable in the job market. They had to settle for jobs at a fraction of the income they once made. The Great Recession of 2008 wiped out whole industries.

Class Action Lawsuit Against Your Mortgage Company

We all know that the banks have had to pay out billions for predatory loans and illegal lending practices, but is joining a class action lawsuit what you really need? Probably not.

Class action lawsuits take a long time to be resolved, and each person that joins often gets much less than they would if they had simply sued the lender directly. While it would be great to take back what was lost for hundreds of clients at once, the truth is that these types of cases demand individual attention. Not all predatory loans are equal, and mortgage fraud violations need to be addressed specifically in order to get the real results that youre after.

Yes, the laws associated with filing a class action lawsuit are the same as entering into mortgage litigation for your particular situation, but if you want to get results within the next year, hiring a firm now is your best bet.

Also Check: What Would The Payment Be On A 100 000 Mortgage

Did Your Lender Act Illegally

We have hundreds of homeowners call our office each month looking to sue their mortgage company, but there are many cases that we simply cannot accept. If the bank has not acted illegally in anyway, then there are no grounds for us to file a lawsuit on. The interesting thing is that many times, the homeowner calling us doesnt even know about the violations the bank has committed. Our foreclosure defense attorneys review all documentation related to the mortgage, and often find violations that are grounds for a winning lawsuit against your lender.

Have you recently been denied for a loan modification? Did your lender issue a notice of default or notice of trustee sale? Have you done everything in your power to stop the foreclosure process to no avail without an attorney? Dont lose your home, take action!

Can I Sue My Mortgage Company For Stress

Sue Ellen Hill Gramajo Bilingual Mortgage Loan Officer ...

While possible, a lawsuit for emotional stress will generally be successful only in the most egregious of situations. This claim is often called negligent or intentional infliction of emotional stress. This means that the lender would have to negligently or intentionally bring a wrongful foreclosure that causes you emotional stress. Such a claim would be highly dependent on the facts and circumstances.

Don’t Miss: How Much Does Paying Mortgage Bi Weekly Save

Deadline To Respond To A Request For Information

The servicer must generally give you the information you requested within 30 business days or explain why the information is not available, as well as provide you with the name and contact information of someone you can follow up with.

When the 30-day response period can be extended. The servicer gets 15 extra days to respond if it notifies you about the extension within the 30-day period and lets you know the cause of the delay.

When the servicer must respond sooner. The servicer must provide the information you requested within ten business days if you’re trying to find out the identify, address, or other contact information for the owner of your mortgage loan.

Is Suing The Best Option

While suing is one option, it may not always be the best option. If you get into the habit of suing your landlords, it may make it harder for you to find an apartment in the future. You dont want to be known as the tenant who sues over everything.

There will be legitimate circumstances where a lawsuit is the only option, such as a serious injury caused by a landlords complete neglect. In other, less serious, situations, a lawsuit may be a waste of your time. If your landlord is withholding $25 from your security deposit and it costs $50 to file a lawsuit in small claims court, you have to determine if the hassle of a lawsuit for such a small sum is really worth your time.

Recommended Reading: How Do I Become An Underwriter For Mortgage

Common Wrongful Foreclosure Claims

As experienced attorneys for wrongful foreclosure, we know that foreclosures happen in a variety of circumstances. Whether the lender has mistakenly claimed foreclosure or purposefully violated your rights, we commonly utilize a number of legal theories to ensure the best results for our clients. These theories include:

  • Negligence
  • Wrongful Foreclosure
  • Mortgage Foreclosure Process In Canada

    Can I Sue Carrington Mortgage for Harassment?

    The mortgage foreclosure process is carried out when the lender does not receive the repayments on a mortgage loan taken by a borrower according to the terms and conditions of the contract. A default in payment by the borrower translates into a loss for the lenders, and they are usually quick to react to check these losses.

    Don’t Miss: Is Total Mortgage A Good Company

    Responding To A Foreclosure Case

    It is important to participate in your court case so you know what is happening and what you can do. You should always attend court dates to make sure you can ask questions and access any resources that are available. This also shows the judge that you care about what happens in the case and are doing everything you can to save your property.

    If you think the bank or loan company has made a mistake or done something wrong in how it handled your loan, it is very important to raise these issues in your Answerso the court can consider your side of the story. You should also work with the lender on options to save your property. This is commonly known as “loss mitigation.”

    Learn more about responding to a mortgage foreclosure case.

    What Are Respa Guidelines

    RESPA applies to the majority of purchase loans, refinances, property improvement loans, and equity lines of credit. RESPA requires lenders, mortgage brokers, or servicers of home loans to provide disclosures to borrowers concerning real estate transactions, settlement services, and consumer protection laws.

    Read Also: Does My Husband Have To Be On The Mortgage

    Motion For Contempt Notice Of Final Cure

    At the end of your chapter 13 plan, your trustee will file a notice of final cure. The trustee has 30 days to file the notice. You can file the notice if your trustee does not. Read In re Bodrick, 498 B.R. 793 .

    If your mortgage company doesnt respond to the notice of final cure, you should seek a court order that your mortgage is current at the end of your plan.

    Keep a copy of the bankruptcy court order. If your mortgage company later says you are not current after chapter 13, you may file a motion for sanctions based on the court order.

    Issues With Filing A Lawsuit By Yourself

    If I

    Suing your mortgage company in small claims court for stress is difficult. Not only do you have to prove that you experienced undue stress, but you must also establish that your mortgage company was directly responsible. Without a legal background, it can be difficult to quantify damages and compile the right documents to support your case.

    Recommended Reading: How Does A Retired Person Qualify For A Mortgage

    Common Types Of Servicer Errors

    With so many different duties and variables, there’s a lot of room for error when it comes to loan servicing. Under the law, the following servicer errors can be addressed in a notice of error:

    • refusing to accept conforming payments
    • improperly applying or crediting payments
    • imposing unreasonable fees or charges
    • neglecting to pay property taxes or homeowners’ insurance
    • failing to transfer accurately and timely information relating to the servicing of a borrower’s mortgage loan account to a transferee servicer
    • not providing an accurate payoff balance amount upon a borrower’s request
    • failing to provide accurate information regarding loss mitigation options and foreclosures
    • any other error relating to the servicing of a borrower’s mortgage loan.

    Why Does It Take So Long To Close My Loan

    Generally, there isnt just one answer to why your mortgage application is taking longer than your neighbors. Everyones situation is different.

    There are a number of common explanations that can cause a longer time to process your application.

  • New government-imposed mortgage rules. In 2014, new regulations were set in place by the Consumer Financial Protection Bureau . These new rules significantly affected the way mortgage lenders originate home loans. It takes lenders longer to document and verify a homeowners ability to repay the loan.
  • Appraisal standards. Pre-housing crisis, mortgage lenders had much more flexibility when it came to getting an appraisal completed. But appraisal standards changed significantly on a number of levels. Nowadays, appraisal management companies are required to follow stringent guidelines. This further delays an already time-consuming process.
  • Title-related delays. Many homeowners dont know everything that goes into obtaining a mortgage. Procedures such as making sure theres a clear title to the property are important aspects of getting your loan closed. If there are any judgments or liens on the property, these need to be cleared up before you can close. Unfortunately, this isnt always a quick fix.
  • Don’t Miss: What Is The Average Interest Rate On Home Mortgages

    Definition Of A Debt Collector Under The Fdcpa

    A company that receives your debt from some other company and the moment it receives your debt, the debt is allegedly in default. And the new company regularly collects delinquent debt for others. For example, the typical mortgage servicing situation.

    If this happens, typically we are dealing with a debt collector.

    More articles

    Popular Articles