Friday, September 22, 2023

Can You Sue Your Mortgage Company

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Other Things You Can Do Make Your Loan Process Go Faster

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

One of the first steps to getting qualified for a loan is having your credit checked. You can get ahead of this one by requesting a copy of your credit report and clearing up any discrepancies that could hurt your chances of getting approved.

Lenders will need to verify a full two years of employment history. If youve had several jobs in the last couple of years, this isnt an automatic deal-breaker, but it can cause delays if you dont have all of the details ready for your lender.

You can get ahead of the curve by having all of the contact info and dates available so your lender can conduct all of the necessary employment verifications.

There will always be some areas that are out of your control when it comes to getting a mortgage loan. Just knowing this fact can bring some peace of mind. But being proactive and staying ahead of the process can help ensure a faster and smoother closing.

Tim Lucas

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Dont Be A Victim Of Wrongful Foreclosure By A Mortgage Company

If your mortgage lender does not follow the laws that govern accounting for and collection of mortgage loan obligation, you could be the victim of a wrongful foreclosure lawsuit and lose your home. Fortunately, the law provides powerful protections and remedies to borrowers who are the victims of mortgage servicer mistakes and misconduct.

A Clinton County, Missouri, circuit court judge ordered a $3.25 million judgment against Wells Fargo and Freddie Mac for wrongfully foreclosing on the home of borrowers David and Crystal Holm.

The Holms argued to the Court that Wells Fargo promised to stop the foreclosure with a reinstatement agreement, but after the borrowers gathered $10,000 for this purpose, Wells Fargo deliberately ignored the reinstatement deal and in an egregious and deceitful manner proceeded with the foreclosure sale of the Holm property to Freddie Mac on the very same day, according to the courts opinion.

My Lender Backed Out Of My Mortgage Can I Sue

What can you do if your lender backs out of the mortgage commitment? A lot of buyers might want to sue the lender because it is difficult to close if, at the last minute, youâre scrambling to find a new lender. There are advantages to working with recommended lenders , but you have to make sure you are working with a well-known and reputable lender.

Q: My lender backed out of my mortgage. Should I pursue a lawsuit against the builder because the builder recommended the lender? The lender backed out of the mortgage commitment three days prior to closing, so I couldnât close and the builder decided to keep my earnest deposit. I didnât default in any way and still donât understand why the mortgage lender backed out of the deal.

A: Our first question to you would be on figuring out why the lender backed out of giving you a mortgage. Itâs not unusual for developers and builders to find and work with particular lenders on their projects. These lenders generally will know the ins and outs of the development and have a better handle on the underwriting issues involved.

There are always pluses and minuses to using a lender recommended by your developer/builder/seller. One disadvantage in using a seller recommended lender is that the lender may give you an above market deal for your loan. The lender may not have your best interests at heart in giving you the loan. The lender may not be the best lender out there for the loan you are looking for.

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Can A Mortgage Company Be Sued For Negligence

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.

The answer is Yes if your mortgage company has violated RESPA then you can sue and that may stop a foreclosure against you. RESPA is a powerful law. Its very helpful when youre facing foreclosure, and especially if the mortgage company has made any mistakes.

Requesting Documents From The Lender

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Requesting documents from your lender is a big part of beginning to defend against foreclosure. Your mortgage loan documents will prove whether your lender was negligent or acted wrongfully during the process of creating your mortgage. The documents may also demonstrate that you are in compliance with your lenders terms, which would mean that the foreclosure process should not have begun. Lenders do not always want to share all the information they have related to your mortgage. Our attorneys know how to get your documents from the lender and how to carefully review the documents for potential defenses against foreclosure.

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Do I Need A Lawyer For Help With A Title Company Lawsuit

It is essential to have the help of an experienced real estate lawyer with a title company lawsuit. A title company may be very helpful and provide assistance during a property sale or when a potential purchaser is considering purchasing a property.

However, there may be times when a dispute arises with a title company. In these cases, an attorney can review your case, advise you of possible remedies, and help you file a lawsuit, if necessary. Your lawyer will represent you during any court proceedings. A title issue can be a major hindrance to completing a real estate transaction. Having an attorney may be the difference between having a clear title and not being able to purchase a property. The law in this area is technical and getting the advice of an experienced attorney is important.

Can I Sue My Mortgage Company For Stress

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.

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What Is Your Goal

If your goal is revenge for all the grief the bank has caused you, suing isn’t going to do it. Most mortgage lenders are far too big to be harmed by any one homeowner. Your bank is like an elephant, and you’re the mosquito whose bite they don’t even notice. And don’t forget that the banks have already paid out billions to settle lawsuits, and they’re still in business. So even a best case scenario for your lawsuit isn’t going to make any difference to them.

If your goal is to get financial compensation for what’s been done to you, that’s going to be tough to accomplish. Remember that banks have effectively-limitless money to spend on lawyers to fight back, and the penalty for what they did, even if you could prove it, may not be very much money.

Also keep in mind that, if you stopped paying your mortgage for any reason, you’re at fault as well. If you go to court, a judge might acknowledge that your mortgage servicer broke laws in the administration of your loan, but she’d also have to acknowledge that you broke your contract when you stopped paying your mortgage. Just because the bank did something wrong doesn’t mean you’re going to get your home for free, or a million dollars in damages.

So be careful of going too far down the rabbit hole of blaming your bank. However deserving of that blame they are, and they are, you still have obligations from the contract you signed when you borrowed money to buy your home. Any judge or jury is going to take that into consideration .

Reasons To File A Lawsuit Against A Mortgage Lender

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

Although it may not seem like a common claim, countless people pursue legal action against their mortgage lender for negligence, such as breaching the terms of a loan agreement or other wrongful acts. In fact, some of the more common lawsuits that tend to arise against a mortgage lender are due to:

  • Mortgage fraud

Lets take a closer look at these three common reasons to file suit.

Sue Your Mortgage Lender for Mortgage Fraud Mortgage fraud often occurs when incorrect information is provided on a loan application. Even though many times, it is the applicant who can be charged with this type of fraud, mortgage lenders can also get in trouble, such as when they forge a mortgage contract.
Sue Your Mortgage Lender for Predatory Lending Mortgage lenders have been known to target buyers, especially elderly borrowers or first-time borrowers, and try to get them to accept incredibly high-interest rates or unreasonable loan terms. As a result, if you can prove that your lender took part in this predatory lending, you may be able to file a lawsuit against them.
Sue Your Mortgage Lender for Discrimination Mortgage lenders are prohibited from discriminating against borrowers based on their gender, race, religion, national origin, or other federally protected characteristics. Consequently, if you believe your mortgage lender has discriminated against you, you may have a valid legal claim.

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Here’s How To Make Your Servicer Correct An Error Or Provide You With Important Information

By Amy Loftsgordon, Attorney

Mortgage servicers sometimes make serious errors when handling a homeowner’s loan account. Fortunately, a federal law, the Real Estate Settlement Procedures Act , provides a way for you to make the servicer correct the error if you believe it made a mistake when managing your mortgage payments. This law also gives you a way to get specific information about your account. Whether you want to notify the servicer about an error or get information about your account, you’ll have to send your servicer a letter.

Under amendments to Regulation X, which implements RESPA, your letter will be considered a “notice of error” or a “request for information.” Different time limits apply for when the servicer has to respond to your letter based on which type of request you send.

Bank And Credit Product Complaints

Report problems with your bank, financial institution, lender, or broker. There are tips to help you file a complaint:

  • Contact the branch manager, the customer service hotline, or the institution’s website.
  • Use this sample complaint letter to explain your problem and how you want the bank to fix it.
  • Provide copies of receipts, checks, or other proof of the transaction.

If the bank doesn’t help, get help from the correct regulatory agency.

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What Are Some Common Legal Issues Associated With Title Companies

Working with a title company can make a property transaction proceed more smoothly, and having title insurance should offer protection in the event that a persons title is challenged by someone with a claim of some kind to it.

However, title companies can be associated with certain specific types of legal disputes, including:

  • A chain of title dispute, for example, if the company fails to identify all possible claims to ownership or unknown liens, easements held by third parties, or possibly the claims of a prior owners heirs
  • An issue regarding whether title is marketable or whether it has title defects
  • A fraud or a misrepresentation or
  • A breach of the insurance contract between the title company and the insured owner..

A title company and its agents are held to a certain standard regarding the accuracy of their work. If a property owner believes that the company or agent did not exercise reasonable care in performing their duties, they may be able to hold the title company liable for losses incurred in connection with the purchase of property.

If an owner were to be unable to sue for negligence they might be left with only the legal right to claim a small recovery for loss of value of the parcel, when, in fact, the impact on the owners use and enjoyment is much more than a reduction of its fair market value.

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Category: Loans 1. Lower your mortgage payment without refinancing Feb 25, 2020 A mortgage recast lets you lower your monthly payment, without the large upfront cost of refinancing. Learn more about mortgage recast here. How to Lower Your Mortgage Payment without Refinancing · 1. Re-Amortize Your Mortgage · 2.

Wednesday, February 17, 2016 Maxwell Swinneyforeclosure grief

If youâre like many homeowners fighting foreclosure, you may have wondered if you can sue your mortgage lender. After all, itâs been proven that the banks have lied, forged documents, deceived people in desperate need of help, and broken countless laws. Itâs happened with loan origination, servicing, and in the foreclosure process. If you canât sue for that, then what in the world can you sue for?

Technically speaking, you can sue. You can pretty much sue anyone for anything. All you need is the money to pay the attorneyâs fees. The question is whether you should. Is it worth the considerable time, effort, and expense? Every situation is different, so the answer will have to be decided on a case-by-case basis, but there are some things everyone should look into before they decide to file a lawsuit against their mortgage lender.

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What Is A Power Of Sale Mortgage

A power of sale mortgage is a mortgage where, in the mortgage contract, there is a language that allows the mortgagee to foreclose on the property without going to court if the debt is not paid. For there to be a power of sale mortgage, there must be bold and underlined language in the mortgage that reads,

“A power of sale has been granted in this mortgage. A power of sale may allow the mortgagee to take the mortgaged property and sell it without going to court in a foreclosure action upon default by the mortgagor under this mortgage.”

Look at your mortgage. If you dont see this language in bold and underlined language, you dont have a power of sale mortgage.

Mortgage Assistance And Your Rights

Scammers target desperate homeowners looking to avoid foreclosure and stay in their homes. These scammers promise theyll get changes to your loan so you can keep your home. But they want you to pay them an upfront fee before giving you any services or getting any results. Dont do it. Its illegal for a company to charge you upfront for promises to help you get relief on paying your mortgage. If youre working with a lawyer, make sure theyre licensed in the state where you live and are reputable.

If a company offering help with your mortgage debt doesnt follow these rules, it could be trying to scam you. Heres what to know about your rights.

  • You dont have to pay any money until the company delivers the results you want. The Mortgage Assistance Relief Services Rule says its illegal for a company to charge you a penny until its given you a written offer for a loan modification or other relief from your lender and you accept the offer.
  • The company must disclose key information to you. If you decide to accept your lenders offer, the company must
  • give you a document from your lender showing the changes to your loan
  • clearly tell you the total fee the company will charge you for its services
  • warn you that you could lose your home and damage your credit if you stop paying your mortgage
  • The companys ads and telemarketing pitches must clearly say
  • theyre not associated with the government, and their services havent been approved by the government or your lender
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    What Can I Do About A Mortgage Company That Lied To Me So They Could Steal My Home In Foreclosure

    If the mortgage company did this within the last two years, consider suing them for fraud.

    These mortgage companies act like they can defraud us and get away with it because they are big banks or because they have done this thousands of times to other consumers and have gotten away with it.

    But you dont have to take it.

    You dont have to let them get away with it. You can fight back.

    Fraud is a horrible problem in Alabama by mortgage companies that are threatening and actually doing foreclosures.

    This is because the servicers have an incentive to take your home but they must pretend to the public and to the government that they are trying to help homeowners stay in their homes.

    They do this by claiming to do modifications.

    But at the same time that they tell you that there will be no foreclosure until your modification is decided they are foreclosing and will complete the non judicial foreclosure in Alabama.

    Fraud in Alabama requires four things:

    Dangers/issues With Filing A Lawsuit By Yourself

    Sue Your Bank, Mortgage Company Realtor, Trash Out Companies – Learn How for FREE!

    Filing a lawsuit in small claims court yourself can be a challenging undertaking. In truth, there are many dangers and mistakes that are associated with filing a lawsuit by yourself. For instance:

    • Many people fail to abide by the strict regulations required to bring a claim against their mortgage lender, preventing them from continuing with their case.
    • Many people are not able to prepare solid arguments to prove your case.
    • Many people do not know how to gather relevant evidence and prepare sound legal arguments to show their damages and how the mortgage lender is at fault.

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