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What Legal Problems Might I Face When I Work With a Mortgage Lender?

Orlando Contract Disputes

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. 

Discrimination 

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. 

Mortgage Fraud 

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. 

Foreclosure 

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).

By : admin | November 16, 2020 | Contract Disputes

The Fragile Nature Of The Corporate Veil

Business Disputes In Orlando

When starting a business, one of the first decisions you must make is the type of entity you will use to run your business. For many in Florida, the limited liability company or corporation is the most desirable because they offer protection of the business owner’s personal assets in the event that the business becomes liable for debts or damages. This separation of the corporation’s assets from those of the owner or shareholders is called the corporate veil.

If you own a corporation or LLC, you may feel impervious to lawsuits or creditors who may seek your personal assets because you have the protection of the corporate veil. However, it is important that you understand the limitations of that protection. In fact, you may not realize that certain actions by business owners or shareholders may dissolve the separation between you and your business.

What might pierce the corporate veil?

Running your business as a corporation or LLC offers you some security. If your business goes into debt, for example, you may not fear losing your home or personal savings. However, the corporate veil does not protect you in every circumstance. The term “piercing the corporate veil” refers to situations where the entity of the owner or shareholders and the entity of the business are no longer separate, placing the owner or shareholders at risk of personal liability. The following are examples of actions that may pierce the corporate veil:

  • Mixing your personal finances with those of the business
  • Using the business to commit fraud
  • Acting egregiously by placing the corporation’s prosperity over the good of the public
  • Using business funds for personal use, even as a loan
  • Keep poor or inaccurate financial records
  • Failing to pay state and federal payroll taxes
  • Misusing business credit cards for personal use
  • Using your personal assets as collateral for a business loan
  • Signing contracts or loan agreements personally without the backing of the shareholders

If these or other circumstances exist and you are facing legal action, your personal property may be in jeopardy. As with most elements of business law, Florida’s statutes may be different from those in other states. You may also be dealing with matters of federal law. This is why, at the earliest sign that you may be at risk of personal liability, you would be wise to seek the advice of an attorney who has experience in state and federal litigation.

By : admin | November 15, 2020 | Business Litigation