When you buy or refinance a home loan, you sign a mortgage that gives the bank a lien on the home. It is the Banks security, or collateral for the loan. If you do not pay the loan, or keep it insured, or pay the real estate tax or comply with your obligations n the loan , the bank has the right to foreclose. There are however rules that the bank must follow. These rules are issued by the federal government and by the state government , and are in the contracts that you signed with the bank. Sometimes these rules are not followed properly.
If you are faced with a notice of foreclosure, gives us a call. Most reputable banks will work with you. This can be an emotional time. Sometimes we can help negotiate a solution . We know the costs and emotional trauma this can be n our clients. We are sensitive to that. We also have the experience and knowledge to help our clients work through these problems and make sure the rules are followed properly.
In the unusual case, at least unusual in this area of Iowa and central Illinois, there will be a mortgage lender that is aggressive and do not, or will not, following the rules. Studies done by the federal government have found that some loan process servicing companies, and a few banks, were involved in improper or unethical activity surrounding the servicing of consumer mortgages.
Situations where interest rates were raised unfairly, or unnecessary insurance coverage was required, or violations of the terms of the mortgage or loan modification, and other intentional or unintentional errors in mortgage loan servicing are made. These are are just some of the reasons uninformed borrowers have lost their homes, despite their ability and willingness to continue paying on their mortgages.
Consumers are often not aware of is that foreclosure in many cases is a choice rather than an obligation.
By following some simple steps, foreclosure could have been avoided. Do not let your lack of knowledge of the rules and how to make others follow the rules, be a cause that you lose your home .
The banking and housing crisis that affected America in 2008 has had severe and far reaching effects. Things have gotten better, but we are still experiencing economic fallout and one of the more unfortunate occurrences has been the practice of wrongful foreclosure and the failure to follow the mortgage la rules.
Estimates are that as many as 4 million American homeowners may have been impacted by these unethical practices.
However, under a recent federal ruling those affected by these unethical practices may be eligible for federal loan re-writes, loan modifications or other remedy. There are some situations covered under the federal rules that special help, possible financial assistance and legal cost recovery or other payments from the unscrupulous loan servicer, including:
- Homeowners who were foreclosed on even though they were not in default
- Borrowers who were denied loan assistance in error
- Loan modifications which contained errors
- Foreclosure on military personnel who are protected by federal law from foreclosure
If your home was foreclosed upon under any of the above circumstances you should contact a wrongful foreclosure attorney promptly .
Fair Debt Collection Practices Act
Sometimes a wrongful foreclosure will also involve debt collection in an improper manner. The Consumer Protection Act was amended in 1996 to include the Fair Debt Collection Practices Act (Public Law 104-208, 110 Stat. 3009 ). Congress passed the law to address the abusive, deceptive, and unfair debt collection practices used by many debt collectors. Personal, family, and household debts are covered under the act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts. A collector may contact a person by mail, telephone, telegram, or fax. However, a debt collector may not contact a debtor at an inconvenient time, such as before 8 a.m. or after 9 p.m., unless the debtor agrees. A debt collector also may not contact a debtor at an inappropriate place. For example, a collector may not contact a debtor at his place of work if the collector knows that the debtor's employer disapproves of such contacts.
Collectors may not contact debtors if the debtors send the collectors a letter asking them to stop. Collectors may not threaten or abuse debtors nor make false statements. Persons may sue collectors for violating the law and can collect up to $1,000 and attorneys' fees for a violation. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less.