I just received a Foreclosure Summons in New York. The loan that was provided for this home had been approved by unethical and incorrect means. It had a teaser rate at first and then adjusted to an extremely high interest rate with payments we simply cannot afford. The loan agent from a broker who had got us the loan had overstated our income and assets when the loan was issued in 2006. How do I go about answering the summons and denying the complaint?
Answer: (1)
Engaging in fraudulent, unethical and deceptive actions to intentionally obtain loans constitute mortgage fraud, which is a federal prosecutable crime. Victims of predatory lending practices, which include bait and switch tactics of a “tease” rate and adjustment to higher rates that borrowers' cannot afford, or who face foreclosure as a result of loan officers who overstate income and assets, have some recourse in pending foreclosure actions.
Presently, New York offers protection against foreclosure by legislatively establishing the crime of mortgage fraud, creating stricter loan underwriting guidelines, providing 90-day pre-foreclosure notices to allow time for borrowers and mortgage companies to resolve matters prior to initiation of foreclosure proceedings, and other pro-consumer measures. These laws were enacted in 2008 and are pending additional legislation in 2009, so it is advisable to consult an attorney immediately to discuss your specific case. Your lawyer may have foreclosure solutions presently available via New York State's Unfair and Deceptive Practices Act, the Federal Truth in Lending Act or other consumer protection laws.
References:
Posted by Staff Writer on 22 Jan 2010