How will a TILA violation affect my foreclosure case?

If you receive a notice of intent from your lender informing you of the intention to foreclose on your property, you should consult with a lawyer about the terms of their original loan. A lawyer can conduct loan audits to determine how the original loan was structured and whether it met the regulations set by the TILA, or Truth in Lending Act.

The TILA regulates mortgage loans and mandates full disclosure of every detail regarding the conditions, fees, and rates that will be applied to the loan. Under the TILA, all details about the mortgage for the purchase of property must be given to the borrower at or before the time of closing whether the borrower requests the information or not. This act was designed to protect both borrowers and lenders from obscure loan terms that may end up being of disadvantage to either party, and a violation of this act has a direct effect on foreclosure proceedings.

If your lender has informed you of its intention to foreclose on your property and you discover the lender has committed a violation of the TILA, you may be able to get the foreclosure overturned, and you may also be able seek damages for recovery of loss from your lender.

Because of the legal complexities involved in the TILA and in foreclosure in general, you should seriously consider hiring an attorney for any and all matters related to a foreclosure proceeding. A lawyer can help you review your loan and can assist you in identifying any foreclosure defenses that may apply.