Will a lending law violation help my foreclosure case?

Under current truth-in-lending laws, your mortgage lender must disclose certain information clearly and in writing, and has a reasonable responsibility to make sure you understand the terms of your mortgage.  Mortgage Loan Audit and Review systems are in place to attempt to ensure this happens, but unfortunately, it doesn't always work as it should. If these terms have not been disclosed, or you have been defrauded by your mortgage lender, you may have a case to prevent the foreclosure on your home. 

Examples of lending law violations can include: 

• A mortgage lender or broker falsifying documents – for example, a lender telling you that you are paying one interest rate, and indicating that rate on some documents, and then you are ultimately charge a far different, higher rate.  In the age of adjustable rate mortgages (ARM), the lender may indicate that this initial rate was in fact true, and lasted for only a brief period of time before the adjustment, but this option ARM must be clearly detailed in your mortgage documents.

• The mortgage lender was not forthcoming about some or all f the facts in your mortgage

• If you mortgage lender took advantage of the fact that English is your second language and you were unaware of the details surrounding your mortgage

In each of these and other instances, you can sue your lender and argue that they violated lending laws, in an effort to prevent against foreclosure. You'll want to get help from a qualified attorney who can plead your case to convince the court that the lender violated your rights.