When you enter into a mortgage with a lender, you enter into a legally binding contract. In doing so, you assume that the mortgage lender you’ve selected is acting in good faith. However, this may not be the case. Here are some potential legal problems you could face when you work with a mortgage lender and what you can do to protect your interests if you run into trouble.
A mortgage lender is not able to legally discriminate against individuals applying for mortgage funding based on protected criteria like gender, race, religion, culture, or sexual preference. Mortgage lenders are bound by the same discrimination restrictions as are found in the Equal Credit Opportunity Act and the Fair Housing Act.
Predatory Lending Practices
A mortgage lender may target a particularly susceptible group of buyers and offer them unreasonable lending terms, often without properly educating or advising potential borrowers of the fine print. For example, a lender may advertise bad or no credit home loans or a home loan with $0 down payment, but neglect to inform the borrower of balloon payments three years into the contract or an absurdly high interest rate.
Many people mistakenly believe that the majority of mortgage fraud is committed by consumers who falsify information on their mortgage applications in hopes of being approved or getting a better interest rate. However, mortgage lenders can falsify financial documents as well and may do so if they’ve sold your mortgage to another lender without informing you.
If you struggle to make your house payments on time, you may be issued a notice of intent to foreclose from your mortgage lender, often a bank or other financial institution. This means that the lender is bringing legal action against you to resume ownership of the home due to nonpayment.
Homeowners have a few options to defend their families and homes against foreclosure, but it requires the help of a seasoned real estate litigation attorney. The initial stages of a foreclosure can buy you enough time to get caught up on your mortgage payments, after which you can move to have the foreclosure dismissed.
Get Experienced Real Estate Litigation Support Today
Before you sign on the dotted line of a home loan, it’s important to understand your legal rights and how to best protect them. Mortgages put a significant amount of money on the line, and you need someone strictly in your corner. Call now for your consultation at 954-767-9662 (Fort Lauderdale), 561-760-9929 (Boca Raton), or 305-842-2730 (Miami).