If a foreclosure action is found to be legally questionable, it can not only put a end to foreclosure but it can also potentially void your mortgage. Sometimes, an appraiser may conspire with the lender and fraudulently inflate the value of an assessed property to help the lender justify a predatory loan. Or a broker inflates the loan application numbers unbeknownst to the homeowner, qualifying them for a loan they wouldn’t have received otherwise. The scores of possible injuries are numerous.
If you suspect that some sort of fraud or misconduct occurred, you may be entitled to various damages and attorney fees. At Mortgage Fraud Examiners, our examinations can determine if there was a breach of contract, errors that possibly void the contract, fraudulent conduct, and/or statutory/regulatory violations. If we are able to locate these abuses, all documents related to your foreclosure may be invalidated and there may be a valid claim for damages.
As the nation’s financial crisis has shown, misconduct is rampant within our financial system. Your mortgage transaction and/or the foreclosure process may have violated regulatory and legal standards. If this occurred, one of our skilled mortgage transaction analysts can reveal any technicalities that can help your attorney put a stop to your foreclosure or change the dynamics of your mortgage arrangement.
Solving Problems For Over 30 Years
The areas of foreclosure defense, mortgage, and other financial issues can be incredibly complex. Even if you are willing to negotiate and work with your bank in an effort to keep your home, you may not even understand where to start. We at Mortgage Fraud Examiners can help guide your attorney through the complex foreclosure process.
Below, are just a of the few of many established lines of attack where the bank had to negotiate on the homeowners terms, not theirs. Some have resulted in homeowners receiving multi million dollar awards and free title to their property.
Sometimes an appraiser will inflate the value of a property to please particular lenders to obtain repeat business from these lenders. Other times, however, appraisers may be colluding with lenders and receiving kickbacks for fraudulent appraisals. Remedies for appraisal fraud can include actual damages, punitive damages, and attorney fees. See, http://www.nakedcapitalism.com/2014/12/bill-black-mortgage-appraisal-fraud-baack-bank-execs-profit.html
Breach Of Contract
Just as you have an obligation to pay your mortgage, the lender has a responsibility not to interfere with your ability to do so. Lenders who quietly reward brokers for bringing borrowers to them -and subsequently pass on the cost of the reward to the borrower – may share liability for the broker’s breach of fiduciary duty. Other examples may include force placing insurance, resulting in more expensive insurance premiums.
Credit Reputation Damages
Upon determining that there has been a statutory violation, legal error, contract breach, or tortuous conduct regarding a foreclosure, you may have experienced economic damages. If your credit reports or credit scores have eroded due to any type of error, you may have legal remedies available to you.
We are often able to determine that the Notary’s Commission is invalid, or documents were notarized without actually witnessing the borrower sign documents. This invalidates all documents in question and can lead to beneficial concessions from the lender, and possible punitive damages.
Typically, unconscionability refers to extremely unfair or one-sided terms in a contractual agreement, usually unbeknownst to the other party. This defense is focused on the events surrounding the creation and closing of a mortgage loan. Unconscionability can give the court great leeway in deciding whether a mortgage can be voided or changed.
Failure To Establish Conditions Precedent
Many homeowners want to get a foreclosure action thrown out of court right away. Using a failure to establish conditions precedent, you can successfully use this defense to attack a lender’s pre-foreclosure process. We can help you obtain any evidence needed to prove the need of a condition precedent.
Unfair And Deceptive Practices
Overreaching mortgage transactions can often be challenged under state Unfair and Deceptive Practice (UDAP) law. Broker misconduct, licensing violations, and transactions with lenders and / or brokers who are not licensed, but should be, may be void.
Interstate Land Sales Full Disclosure Act (ILSFDA)
The ILSFDA applies to the sales of subdivisions containing 25 or more residential lots (or, potentially more than 100) where interstate commerce is used to sell the subdivision’s lots. There are specific requirements and disclosures that need to be made to the consumer prior to the sale and at closing when a builder wants to sell the lots.
Equal Credit Opportunity Act (ECOA)
Under the ECOA, victims of bait-and-switch tactics can file a claim for legal recourse. If you have been taken advantage of due to unscrupulous marketing strategies, ECOA provides numerous solutions, including private remedies for actual and punitive damages, equitable relief, and attorney’s fees.
Fair Debt Collection Practices Act (FDCPA)
Consumers may bring lawsuits against abusive debt collectors violating the FDCPA, and may obtain damages from the debt collector. Damages may include actual damage costs of the lawsuit, and reasonable attorney’s fees. Actual damages can also include compensable credit reputation damages.
Fair Housing Act
The Fair Housing Act prohibits discrimination in residential real estate-related transactions based on race, color, religion, sex, handicap, familial status, and national origin. Common violations of this act include lenders allowing discriminatory pricing by mortgage brokers or loan originators.
Home Ownership And Equity Protection Act (HOEPA)
The HOEPA Rule is a very powerful federal law governing high-cost refinance and home equity loans. Though HOEPA was enacted as an amendment to the Truth in Lending Act (TILA), the act specifically addresses abusive practices. Violations of HOEPA allow victims to pursue substantial monetary damages.
Real Estate Settlement Procedures Act (RESPA)
In addition to prohibiting kickbacks and unearned fees, RESPA governs many types of disclosures that lenders must provide at the time of closing. Enacted in 1972, this federal law enables damages, and sometimes revocation if the error triggers TILA.
Real Party In Interest
This is a procedural defense to foreclosure that can be extremely effective at stopping a lender’s ability to foreclose. The real party in interest will essentially question the ownership of the mortgage and challenges whether the foreclosing party is, in fact, the holder of the mortgage and note.
Truth In Lending Act (TILA)
For any loan transaction, banks must provide a homeowner correct disclosures at or before the time of closing. If these disclosures are inaccurate, the loan may be statutorily rescindable under TILA. The lender must also provide a “Notice of the Right to Rescind” at closing. If this form is inaccurate, incomplete, or incorrect, the loan is rescindable up to three years after the date of closing.
Call The Nation’s Leading Transaction Analysts Team
Using more than 30 years of industry experience and specialized mortgage transaction analysis, we can provide your attorney with all the assistance and evidentiary support that you need to obtain a satisfactory resolution. Countless attorneys have relied on and referred our services. We would be happy to assess your current mortgage issue, investigate any evidence, and identify any possible mortgage defenses/offenses that can help your attorney preserve your home, safeguard your finances, and protect your rights at this time.
Have your attorney request a case consultation today and work with a helpful member of our firm to learn more about your unique situation. If your case is of urgency, please contact our office to speak with us directly.