If you are a victim of mortgage fraud, then you need to continue reading this article to learn how you have been victimized as well as what offenses your lender/bank may have committed against you and how you can fight back.
In June, 2011, the Huffington Post reported that the Department of Housing and Urban Development performed confidential audits on the five largest mortgage companies concerning the filing of defective documents to claim excessive reimbursement from the feds on foreclosed loans.
Much of what was discovered pointed to mortgage fraud on millions of homeowners. Those five banks were Bank of America, Wells Fargo, Citigroup, JP Morgan Chase, and Ally Financial (aka GMAC renamed in 2010). At the present, the Justice Department is attempting to reform the criminal and civil enforcement actions.
If you can prove your lender or loan servicer committed predatory lending, violated mortgage lending laws or compliance disclosure laws, then you can suit your lender/servicer. If you are a victim of mortgage fraud, the most typical lawsuits that have been filed involve these types of claims:
- Excessive and unauthorized fees
- Violating RESPA, TILA, and FCRA consumer protection laws
- Deceptive loan practices regarding interest rates and loan terms
- Refusing to communicate with the homeowner about the loan
- Errors and mistakes in handling loan documentation
- Mistakes in properly applying mortgage payments
- Mishandling of impound accounts
- Ignoring Chapter 13 plans
- Robo-signing and ignoring proper procedure in handling foreclosures
- Non-compliance with state foreclosure laws
- Forcing unnecessary hazard insurance on homeowners
Without a doubt, one does not need to be a “rocket scientist” to recognize that many of the predatory lending abuses listed above were imposed on most American homeowners. For that reason, foreclosure help may be what is needed to stay in your home.
If your lender has proceeded with the foreclosure process you may be able to seek damages by obtaining a temporary restraining order (TRO) to stop the proceedings. If the foreclosure was implemented, you still may be able to obtain a set aside. Seek counseling with a real estate foreclosure defense attorney if you suspect your lender has performed any of the above illegal acts against you.
Should you decide to place a lawsuit against your lender/servicer due to mortgage fraud, just know that filing a lawsuit and placing a “lis pendens” against the property will prevent the lender/servicer from selling the property until the lawsuit has been settled. Be aware that it will not stop them from foreclosing, but it will protect your home from being sold until the lawsuit has been resolved.
One last thought, be cognizant of the attorney that you select. Be sure to check out their credentials and experience because you will need an foreclosure defense attorney that specialize in foreclosure defense.