What is a disclosure violation by a creditor and how might it have contributed to my foreclosure?

Truth in lending is a disclosure violation by a mortgage lender that could contribute to your foreclosure. Foreclosure is the legal process the lender has when you’ve defaulted on your mortgage loan (you missed mortgage payments). To start the foreclosure process, the lender will file a foreclosure complaint with your local court. You can fight the foreclosure by filing a written response to the foreclosure. The response includes a foreclosure defense (the reason why the foreclosure shouldn’t be granted). If your mortgage lender didn’t tell you the truth about your mortgage, then you can use that fact as a foreclosure defense.

If your mortgage lender violated the truth in lending, it failed to explain important information about your mortgage. For instance, you weren’t told about the harsh terms of the mortgage loan that would cause you to go into the foreclosure regardless of if you made the payments or not. One example is if your mortgage included a balloon payment shortly after you received your mortgage. A balloon payment is when the entire balance is due in at one time even though you have a 13 or 30 year mortgage.

Truth in Lending Act is complicated. Therefore, when fighting a foreclosure complaint it’s best to seek legal assistance. A real estate lawyer will review the terms of your mortgage to see if your lender violated the Truth in Lending Act. If the lender didn’t, the lawyer will review your situation to find a different foreclosure defense for to use.