Foreclosure Tips: How to Take Action Against Unfair Mortgage Lending

pic of foreclosure noticeUnfair mortgage lending practices can mean a multitude of different things including: taking advantage of an unassuming borrower, charging excessive points and fees, and engaging in fraudulent and deceptive conduct during the formation of the loan process. There are protections for borrowers under the Truth in Lending Act (TILA), and an amendment to the lending act called the Home Ownership and Equity Protection Act (HOEPA). TILA ensures that lenders are disclosing all their pricing and payments they have received clearly and accurately. HOEPA makes sure that lenders are not charging late fees over 4% of the past due payment.

Be prepared for the worst

Keep track of your transactions: The lenders are required by law to keep you updated on payment due dates, payment amounts, any associated late fees or service fees, and notices of foreclosure dates. Basically, everything. Make sure you keep track of everything going back and forth from you to the lenders and vice versa. Check that prices are staying consistent and hidden fees aren’t coming in.

Watch out for risky loans: Predatory lending is when lenders pack expensive insurance products into the loans, market unnecessary products to vulnerable parties such as elderly people, and repeated refinancing of loans which include multiple fees and penalties given to the borrower. Failing to communicate the true risks and costs of loans and loan products is illegal.

How to Take Action

Lenders are subject to keep lending practices fair by following the laws stated above. If you believe you have fallen victim to illegal unfair lending practices in your foreclosure case, there is still time for you to fight for your home in court. Keep in mind military personnel who bought a mortgage before deploying can have their foreclosure delayed. Lewisville foreclosure attorneys at Julian, Crowder & Shuster law firm are here to answer questions about unfair lending.



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