Predatory Mortgage Lending & Wrongful Foreclosure
Both federal and state governments have passed numerous pieces of legislation designed to protect homebuyers from so-called predatory lending entities. Major consumer protection acts include the Real Estate Settlement Procedures Act, the Fair Debt Collections Practice Act, and the Truth in Lending Act. The Obama Administration additionally has pushed through a massive piece of legislation to offer relief for homeowners teetering on the brink of foreclosure.
What are typical practices used by predatory mortgage lenders? Techniques for bilking homeowners abound. Some lenders fail to disclose fees, terms, conditions, and stipulations and later try to enforce these "invisible" clauses. Others prey on consumer fears to get homebuyers to sign off on exorbitant and even extortionist rates and terms. Still others tack on massive fees upfront, which essentially suck away property equity before it can be accrued. Often, predatory lenders will get borrowers to agree to unreasonable or nearly impossible to fulfill timetables for repayment.
Economists and mortgage industry analysts agree that predatory creditors have helped to spur the spectacular collapse of the housing market that has the sent the US economy into its current tailspin. The good news for individual homebuyers is that legal recourse exists. If you have been the victim of a predatory creditor, mortgage lender, or agency, you can bring suit and recover damages, including all the payments you have made on your loan thus far and legal costs associated with the suit.
For assistance with your mortgage law case or loan modification, contact the firm of Howard Law today. We have a vast amount of experience in fighting against predatory mortgage creditors, and we have the will power, trial readiness, and client-centered approach you need to get your finances back on track.
Business and Professions Code §10085.6(a) prohibits a person (including attorneys) from negotiating, attempting to negotiating, arranging, attempting to arrange, or otherwise offer to perform a "mortgage loan modification or other form of mortgage loan forbearance" and receive/claim/demand/charge/collect any compensation until after the person (including attorneys) has fully performed each and every service the person (including attorneys) has contracted to perform or represented he/she would perform. The term compensation also includes wage assignments, a lien on real or personal property, or other security to secure compensation.
In accordance with Business and Professions Code §10085.6, our firm will not charge or collect our fee for any of these services until after we have performed the services under this "Do It Yourself" Agreement.
Pursuant to Business and Professions Code §10147.6, our firm herby notifies you that it is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge. A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available from your local HUD office or by visiting www.hud.gov. Notwithstanding, by entering into a "Do It Yourself" agreement with our firm, you will be choosing to have our law firm use its influence and experience to represent you in this matter and will have chosen us as a better alternative to the aforementioned other government and non–profit options.
To find out more information about how foreclosure laws may affect you or about how our law firm deals with lenders during the foreclosure boom, please read the following published articles:
| Dealing with the Foreclosure Boom|
By Nancy Wride