Under New York law, can I take legal action against a lender if I am being foreclosed on but didn't qualify for the loan in the first place?
Under New York law, can I take legal action against a lender if I am being foreclosed on but didn't qualify for the loan in the first place?
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Answer: (1)
The answer to your question would depend on the type of loan, the terms and conditions disclosed, and the various laws that the loan was subject to. Your loan may of been subject to one of New York's predatory lending laws (Banking Law Section 6-l) which states that in the case when the lender intentionally lent money to a borrower who lacked the ability to repay it, the home loan agreement can be rendered void, and the lender cannot collect, receive or retain any principal, interest or other charges whatsoever with respect to the loan and the borrower may recover any payments made under the agreement. Moving forward, it would be best to consult with a foreclosure lawyer to determine the proper legal recourse to take in your case.
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Posted by Jason Tong on 30 Apr 2010