What are some lender violations that can help my foreclosure case?

Under current Truth in Lending laws, mortgage lenders and brokers must follow certain rules when selling you, the consumer, and a mortgage loan.  They must clearly explain to the borrower what they are getting with this loan, and have some responsibility to show that the lender understood these terms.    In cases when mortgage lenders falsified information, or were not forthcoming on mortgage papers, the homeowner may be able to fight foreclosure by suing the lender under the truth-in-lending statues. As such, it is important to understand foreclosure defenses and lending violations.

Examples of lender violations include: 

• Failure to report on documents what the interest rate on the mortgage was, and if it was adjustable, how it would go up over time.  Interest rates have a huge part in the amount of a borrower’s monthly payment, and many borrower’s simply are not aware that the mortgage payment may double or more over time. 

• The lender clearly lies about the mortgage rate – tells the borrower one thing, and the documents indicate another, or the puts the wrong interest rate on loan documents and the actual issued rate is far higher.

• The lender takes advantage of a borrower’s inability to speak or read English, or a disability that makes it impossible for them to understand what they are signing.

A borrower can hire an attorney and sue under these and other truth-in-lending regulations. Your lawyer can help you to potentially save your house, or at least to recover some damages from the lender who was untruthful.