If you were approved for a manipulated home loan from Countrywide Financial and are facing Countrywide foreclosure now because you cannot make your mortgage payments, you may have options available to you that most typically would not have, due to the circumstances surrounding the reports of corrupted mortgage loans given by the company. Countrywide Financial was responsible for thousands of home loans being entered into that, in any reasonable banking situation, would not have been allowed. Approved borrowers, in some cases, were given loans hundreds of thousands of dollars above what they should have been. When the borrower failed to make the inflated mortgage payments after all of the hidden fees were applied, the financial company refused to make any arrangements, forcing most into foreclosure proceedings.
Bank of America
If your mortgage plan was entered into or approved before December 31st, 2007, you may be eligible for mortgage relief due to the purchase of Countrywide Financial by Bank of America. Over 400,000 Countrywide customers have had restructured loans made available to them by Bank of America using different loan programs designed by the bank to help dissolve some of the 8.4 billion dollars lost in reductions of interest rates and principal amounts.
The TILA (Truth in Lending Act)
Many customers that received shady mortgage loans may be able to be relieved of their obligations to foreclosure proceedings through the Truth in Lending Act.
- Under this act, any lender is required by law to provide the customer all disclosures regarding the loan.
- This means all finance charges and annual percentage rates involved are to be clearly stated in a disclosure packet at the time of or before the closing of the loan.
- You may also be able to file for relief from foreclosure if your Countrywide representative did not inform you of your right to rescind on your loan. Your right to rescind allows you to file for cancellation of your mortgage and apply for refund of any funds given to the lender at any point within three years after the loan’s closing.
Getting Help
In any legal matter, but especially in matters of a foreclosure filed on a loan approved by Countrywide Financial, it is your right to be represented by an attorney in any filings either brought by you or brought against you. You may also have any documentation or correspondence between you and your lender viewed by your attorney before signing or agreeing to anything. A careful review by a lawyer, in any legal circumstance, is your best assurance that you aren’t being swindled by a lender or financial organization.
