Tuesday, September 20, 2022

Can You Sue Your Mortgage Lender

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Why Hire Banking Attorney Rachel E Khirallah For Your Dispute

Sue Your Mortgage Lender and Force them to “PRODUCE THE NOTE”

Rachel Khirallah is a knowledgeable,effective mortgage servicing litigation attorney. She has the unique skills andexperience to best represent borrowers in in these claims and is dedicated tomaking sure you are protected.

It is no secret that large financial institutions have considerable financial resources at their disposal. For borrowers, this can make going up against a bank or mortgage servicing company stressful and intimidating. Fortunately, you are not alone our Texas mortgage servicing litigation attorney is prepared to fight aggressively to protect your rights and get you the fair treatment that you deserve.

When Your Mortgage Lender Can Delay Starting Court Action

The pre-action protocol says your lender should consider avoiding court action if you:

  • made a claim to an insurer under a mortgage payment protection policy, you expect the insurer will pay it, and you can pay a mortgage instalment not covered by the insurance
  • applied for a Support for Mortgage Interest loan or Universal Credit , you expect your application to be successful, and you can pay a mortgage instalment not covered by your SMI or UC
  • applied to your local council for homelessness prevention support and you expect they will provide support
  • are struggling to pay because of another specific personal or financial difficulty and you need time to get free independent debt advice, or you have a confirmed appointment with a debt adviser
  • take steps to sell your home and pay off the mortgage – you should get independent financial advice before doing this
  • are complaining to the Financial Ombudsman Service about the way your mortgage lender has dealt with your arrears
  • booked an appointment with a debt adviser and you expect an improvement in your financial circumstances in the near future – for example, a new job or increased income from a lodger

Under the protocol, your lender should not start a possession claim while you are exploring an arrangement with them. This might include:

If your lender decides to start court action anyway, they should tell you this in writing.

Wrongful Foreclosure Attorney In New York

As homeowners, we like to think that our mortgage lenders have our best interests in mind. After all, without lenders homeownership would be nearly impossible. But the truth is that lenders are not always landlords who care. Lenders are often large national companies focused on collecting principal and interest. These companies are run by everyday people, and people are not always trustworthy. Whether they are covering up their own mistakes or succumbing to pressure from their management, people cut corners. Foreclosure, however, must be done strictly according to the laws.

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How Do You Win A Foreclosure Fight

While the best way to win a foreclosure fight is by hiring an experienced and well prepared attorney, preparation should take place before the foreclosure process begins. Documentation is key. Keep meticulous records including the dates and content of discussions with your lender and keep copies of all relevant documents.

If You Default On Your Mortgage

Mortgage

If you default on your mortgage, the lender can go to court to take the property or sell it to pay the mortgage debt. This process is called foreclosure. In a foreclosure, the lender cares about getting its money back. They dont care about getting fair market value for the property or what might be left over for you. Its important to take quick action if youre having difficulties paying your mortgage. See our information on foreclosure.

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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.

When The Servicer Doesn’t Have To Respond To Notice Of Error Or Request For Information

The servicer doesn’t have to address your notice of error or request for information in some situations, like if:

  • your letter is about an error that is essentially the same as one you previously asserted
  • your letter requests information that is essentially the same as a previous request
  • your request is overly broad, or
  • you’re asking about a loan that was transferred to another servicer more than a year ago.

But the servicer can’t just ignore your notice, even if it fits one of the four criteria above. It must notify you within five business days after determining that it doesn’t have to deal with your notice or request, and give you the basis for the determination.

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How To Sue For Mortgage Loan Fraud

This article was co-authored by Clinton M. Sandvick, JD, PhD. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013.There are 22 references cited in this article, which can be found at the bottom of the page. This article has been viewed 14,313 times.

Mortgage loan fraud and predatory lending have been problems for years. As a consequence, many people are pressured into getting loans they wouldnt normally qualify for. You may have been tricked into taking out a high-interest loan, or you might have been sold a house using a false appraisal. If you are the victim of mortgage loan fraud, then you can sue in court.

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

Using your VA Home Loan Benefit: Working with a Realtor and Lender

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.

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How The Cfpb Mortgage Complaint Process Works

If you decide to file a complaint with the CFPB, you must first go to their website to submit a complaint. It can all be done online. Heres what you need to know about submitting a complaint against a mortgage lender:

  • Submit a complaint here at the CFPB website. Youll need to provide information about what happened. Include information about dates and amounts involved. Dont forget to provide the name of the company and upload any documentation that supports your complaint. Blackmon created a paper trail of her conversations with each representative. It has helped when I needed to prove we hadnt received certain documents or relay the inconsistencies reps told us about program qualifications.
  • CFPB review. Once you submit your complaint, the CFPB will review it. They will forward the complaint to the company or to a different agency that might be able to better assist you. You can get updates on the progress of your complaint by creating an account and logging in with a username and password.
  • Response from the mortgage lender. Next, the mortgage lender will respond. The CFPB claims that many companies respond within 15 days. Overall, the whole process can take about 60 days until the company offers a final response to the complaint.
  • CFPB publishes the complaint. Your complaint is included in the CFPBs complaint database. You can give permission to have more details included while your identity and personal information are obscured.
  • Types Of Lender Liability Cases

    When determining whether it is time to pursue legal action against a lender, and involve an experienced attorney to guide you through the process, consider the following:

    Our objective in lender liability cases is to ensure banks, financial services, and other lenders treat their customers and borrowers fairly. Because these financial institutions have considerable power and deep resources, working with an attorney becomes critical to leveling the playing field. As such, borrowers who have been wronged by lenders that violate a duty of fair dealing or good faith should take initiative to involve a lawyer as soon as they can. Doing so can make the difference in ones legal journey, and can help ensure the correct steps are taken at every phase.

    Lender liability is a complex and evolving area of law, and it is not one all attorneys are equipped to handle. With extensive experience handling these cases, our legal team at Spangenberg Shibley & Liber LLP is prepared to help evaluate your situation, explore your available options, and seek the best possible resolution.

    To discuss a potential case, contact us for a free consultation.

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    Make A Money Judgment

    As well as a possession order, a money judgment can be issued by the judge at the same time.

    A money judgment allows your lender to get back all the money owed on your mortgage without having to take you to court again.

    This means that if your lender evicts you and isn’t able to get back all the money you owe from selling the property, they can force you to make up the difference. They won’t need to go to court again to do this.

    If the possession order is suspended, the money judgment will usually be suspended as well. This means that it won’t come into force unless you don’t keep to the terms of the suspended possession order and your lender is allowed to evict you.

    Dont Be A Victim Of Wrongful Foreclosure By A Mortgage Company

    The answer is (b)! Yes, you can actually sue your insurance company if ...

    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.

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    Dangers/issues With Filing A Lawsuit By Yourself

    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.

    We Sue Lenders For Mortgage Fraud

    We offer free legal advice, and we strive to make our services available to homeowners who cannot afford to pay thousands of dollars to save their home. If you believe that your lender has lied to you or is committing mortgage fraud, you should immediately call our office and speak with our experienced mortgage foreclosure attorney to determine your best options to fight foreclosure.

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    Can A Mortgage Company Sue Me After Foreclosure

    The short answer is yes. In any mortgage, the debtor is the mortgagor, and the creditor is the mortgagee. If a mortgagee forecloses on your property, the mortgagee has to sell the property at a foreclosure sale. If, after the foreclosure sale, the mortgagee still has not recovered the amount of money you owe them, the mortgagee may pursue a deficiency judgment.The law on deficiency judgments is found here.

    · After foreclosure, a mortgage company may sue you for the deficiency.

    · But a mortgage company may not sue you for the deficiency if you have a power of sale mortgage, and the property is your homestead, and you elect against a deficiency judgment.

    · In any lawsuit for the deficiency, you have important rights. This post will explain what your rights are if a mortgagee sues you or a deficiency judgment.

    To obtain a deficiency judgment, the mortgagee must file, in court, a motion for leave to enter a post-judgment deficiency order. The mortgagee must file this motion within 90 days after the sale. The mortgagee must send notice of this motion to you, or to your attorney if you have one. The court will then set a hearing on the mortgagees motion for a post-judgment deficiency order.

    At the hearing, you will be allowed to appear and present evidence before the judge as to how much the deficiency is. The judge will then determine the amount of the deficiency.

    The state law requires the judge to determine the amount of the deficiency by calculating:

    Compliance With Modified Loan Terms

    How To Choose The Best Mortgage Lender (First Time Home Buyers)

    Mortgages are binding contracts. Just like any other contract, they can be modified by a writing and sometimes orally. If you and your lender have modified your mortgage agreement, the lender must comply with the terms of the loan as modified. A foreclosure based on the original terms will be invalid. While it is generally very difficult to modify the terms of a mortgage orally, that is to say without a formal writing, it is possible in certain situations.

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    What Happens If I Am Sued By A Mortgage Lender

    No one wants to lose their home because they can no longer afford to make payments on it. Of course, this can be devastating. However, this does not have to be the case. If an individual who cant make mortgage payments decides to file for bankruptcy, they can save their home from going into foreclosure. A foreclosure will stop as soon as the bankruptcy is filed because of a provision known as the automatic stay.

    If you are being sued by a mortgage lender, it is important to speak to an attorney. Our legal team can help answer the lender on your behalf and also serve a Notice of Appearance. In addition, we will help look for defenses that can help you keep your home. Not only that, we will prepare to answer any counterclaims that the lender tries to bring. There may be some situations where the lender that is suing you doesnt even own your mortgage.

    Our firm is prepared to help determine whether you can participate in a loan modification program that can require the bank to reduce your monthly payments and interest rate so the mortgage becomes affordable once again. If you are concerned about your mortgage or have received a letter from the lender about a lawsuit, contact our firm today. We are here to help.

    If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq.today to schedule a consultation and discuss your options.

    Can You Sue For Wrongful Foreclosure

    Yes. In New York, the bank must bring a lawsuit against you, through a summons and complaint, to foreclose on your home. This means that wrongful foreclosure is generally brought as a counter lawsuit to the lenders foreclosure action. If the lender has not yet brought a foreclosure lawsuit, there is no foreclosure and, thus, no wrongful foreclosure to dispute.

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    Why You Might Want An Assumable Mortgage

    An assumable mortgage means if you sell your home, a buyer can take over your mortgage. If interest rates have gone up since you got your mortgage, the lower interest rate of your assumable mortgage will be a good selling point. If a mortgage can be assumed with qualification, it means your lender must approve the buyer before the buyer can assume the mortgage.

    If the buyer can assume your mortgage, its very important to make sure you wont still be responsible if the buyer later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a buyer under section 24 of the Property Law Act. Once the lender approves the buyer under this section, you are no longer responsible for paying the mortgage.

    Technical Defaults Improper Default Notices

    Mortgage Broker

    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.

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