Your Rights As a Homeowner in Foreclosure and Pre-foreclosure
I have been doing a lot of research on the American Nightmare known as the Foreclosure crisis.
In my search to find out what the consumer rights were, I found that there are many of refinanced mortgage loans in the past 3 years have TILA (Truth In Lending Act) violations.
Not only are the TILA violations in the mortgage industry there are TILA violations also on the credit card companies and there are possibly more companies that give credit (local stores that offer credit).
Now do not start thinking you can get away with not paying your bills, please.
This is here so you know your rights and can renegotiate with those companies or be able to seek legal help and let them do the process.
Concerning mortgages, Federal laws like TILA (Truth In Lending Act), HOEPA (The Home Ownership Equity Protection Act), and RESPA (Real Estate and Settlement Procedures Act) are being used by homeowners with Lawyers.
They are fighting back against mortgage lenders and those so called servicers.
These laws are being used by smart homeowners with their lawyers in the foreclosure process and even in pre-foreclosure.
As long as you have refinanced your home within the last 3 years, you may qualify.
Simply review your loan documents and see if there are any violations that can help you.
There are many laws that must be implemented when dealing with TILA, one of them seems to be most violated by many of the lenders - Notice of Right to Cancel - also known as the, 3 Day Right to Cancel provision.
Here are some laws that must be followed by the lender: Each borrower must receive two copies of the Notice of Right to Cancel at closing.
The notice must clearly inform the consumer of their right to rescind the transaction and must also explain how to exercise the right.
The notice must also disclose the exact date on which the rescission period expires.
Congress felt so strongly when they enacted TILA, that even a minor technical violation with the Notice will provide the borrower an additional 3 years within which to exercise the right to cancel the predatory loan.
The important duty of filling out the vital information on the Right to Cancel notice is left to a notary and the lender reviews the final loan docs, to ensure the borrower was provided with lawful and accurate information.
But, in hastiness to get many loans done as soon as possible, many of the lenders failed to review the loan docs, they failed to provide an effective notice to the borrower.
You as the borrower then have a powerful right to cancel or rescind the loan for up to 3 years after the closing.
Any homeowner who is facing foreclosure or an interest rate adjustment should look through their loan documents to see if they were provided with a Notice of Right to Cancel and if so, look to see if the dates were filled in correctly to disclose the three day right to cancel.
If the borrower was provided with a notice that did not contain the correct expiration date for rescission, that borrower is likely the victim of a predatory loan and they may sue their lender under TILA .
Some of the tactics these mortgage brokers and lenders use are back dating the Right to Cancel so when they are recording them you have already given up your 3 day right to Cancel.
This is a VIOLATION.
Now here is your leverage! Any consumer harmed by a violation of Truth in Lending Act may bring a civil suit against the lender.
Generally, TILA provides for the following civil remedies: (1) actual damages; (2) damages twice the amount of any finance charge in connection with the transaction; (3) damages not less than $200 or greater than $2,000; and (4) Reasonable Attorney Fees.
15 U.
S.
C.
§ 1640(a).
Now what you need to do: if you feel you have been a victim of Predatory Lending tactics or any of the information above contact an experienced mortgage lawyer or lawyer who is experienced in mortgage law and discuss your legal rights and remedies right away!
In my search to find out what the consumer rights were, I found that there are many of refinanced mortgage loans in the past 3 years have TILA (Truth In Lending Act) violations.
Not only are the TILA violations in the mortgage industry there are TILA violations also on the credit card companies and there are possibly more companies that give credit (local stores that offer credit).
Now do not start thinking you can get away with not paying your bills, please.
This is here so you know your rights and can renegotiate with those companies or be able to seek legal help and let them do the process.
Concerning mortgages, Federal laws like TILA (Truth In Lending Act), HOEPA (The Home Ownership Equity Protection Act), and RESPA (Real Estate and Settlement Procedures Act) are being used by homeowners with Lawyers.
They are fighting back against mortgage lenders and those so called servicers.
These laws are being used by smart homeowners with their lawyers in the foreclosure process and even in pre-foreclosure.
As long as you have refinanced your home within the last 3 years, you may qualify.
Simply review your loan documents and see if there are any violations that can help you.
There are many laws that must be implemented when dealing with TILA, one of them seems to be most violated by many of the lenders - Notice of Right to Cancel - also known as the, 3 Day Right to Cancel provision.
Here are some laws that must be followed by the lender: Each borrower must receive two copies of the Notice of Right to Cancel at closing.
The notice must clearly inform the consumer of their right to rescind the transaction and must also explain how to exercise the right.
The notice must also disclose the exact date on which the rescission period expires.
Congress felt so strongly when they enacted TILA, that even a minor technical violation with the Notice will provide the borrower an additional 3 years within which to exercise the right to cancel the predatory loan.
The important duty of filling out the vital information on the Right to Cancel notice is left to a notary and the lender reviews the final loan docs, to ensure the borrower was provided with lawful and accurate information.
But, in hastiness to get many loans done as soon as possible, many of the lenders failed to review the loan docs, they failed to provide an effective notice to the borrower.
You as the borrower then have a powerful right to cancel or rescind the loan for up to 3 years after the closing.
Any homeowner who is facing foreclosure or an interest rate adjustment should look through their loan documents to see if they were provided with a Notice of Right to Cancel and if so, look to see if the dates were filled in correctly to disclose the three day right to cancel.
If the borrower was provided with a notice that did not contain the correct expiration date for rescission, that borrower is likely the victim of a predatory loan and they may sue their lender under TILA .
Some of the tactics these mortgage brokers and lenders use are back dating the Right to Cancel so when they are recording them you have already given up your 3 day right to Cancel.
This is a VIOLATION.
Now here is your leverage! Any consumer harmed by a violation of Truth in Lending Act may bring a civil suit against the lender.
Generally, TILA provides for the following civil remedies: (1) actual damages; (2) damages twice the amount of any finance charge in connection with the transaction; (3) damages not less than $200 or greater than $2,000; and (4) Reasonable Attorney Fees.
15 U.
S.
C.
§ 1640(a).
Now what you need to do: if you feel you have been a victim of Predatory Lending tactics or any of the information above contact an experienced mortgage lawyer or lawyer who is experienced in mortgage law and discuss your legal rights and remedies right away!
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