If you are facing foreclosure on your home, proving that your mortgage terms are illegal can be an effective defense against it, as this will cause the court to put the foreclosure on hold while it reviews the case. Mortgage fraud is running rampant throughout the United States and can cause potential financial damage and ruin homeowners who are victims of fraud. Therefore, it is important to note whether your mortgage terms are illegal or not.
Determining Whether Your Mortgage Terms Are Legal or Illegal
You should visit the Registry of Deeds in your city or township and obtain the copies of documents recorded on your property. Use your name, spouse’s name, property address, and mortgage lender’s name to find them. Print out all relevant documents.
Determine if the recorded mortgage has a stamped book and page number. If it does not, it was never properly recorded and could be fraudulent.
Compare the mortgage document and other recorded documents (interest-only rider, adjustable rate rider) to the mortgage documents you received after the mortgage closing. Carefully examine and make sure that the terms in the recorded documents are exactly the same as the terms in your documents. Any discrepancies could indicate an illegal loan.
Check the signatures of both you and your spouse, as well as the dates, on all of the recorded documents. If either the signatures or dates are incorrect or appear to have been changed, it’s likely that your mortgage company is involved in mortgage fraud.
Check to see if you have an interest-only rider, adjustable rider, and negative amortization rider in your mortgage package. If they are not included but are recorded at the Registry of Deeds, you definitely have an illegal mortgage, as your mortgage company is attempting to add a negative feature to the loan in order to gain more interest payments from you.
What to Do If You Discover that Your Mortgage is Illegal
Your very first call should be placed to the Federal Trade Commission (FTC). They have federal mortgage professionals who need to be involved in order to handle this mortgage fraud. Only after you have notified the FTC should you call your mortgage company and let them know that you have discovered the illegal mortgage.
Obtaining Legal Help
Mortgage fraud is a very serious crime that could cost you much money and even your home if it is not discovered and proven in court. An established and experienced foreclosure defense attorney can provide sound legal advice that applies to your case and present the strongest case possible to prove that your mortgage company’s terms are illegal and to stop any foreclosure attempt on your home.
