You have heard it on television or know someone personally who is experiencing foreclosure. The American Dream has become the American Nightmare for many. Watching Wall Street get bailed out has caused great frustration for many as Main Street seems to be all but forgotten. For those who are looking to stop or prevent foreclosure, there may be a solution...the Truth in Lending Act.The Truth in Lending Act (TILA) is a federal statute that is intended to protect borrowers and consumers against dishonest lending practices. The TILA law requires lenders to be honest in disclosing all the details of a loan, which also allows borrowers to easily compare terms between lenders. If you are facing foreclosure and find an error in your mortgage documents, you have the option of hiring an attorney and filing a civil suit against the mortgage company. If the cost for an attorney is too expensive, do not worry. The lawyer may take the case on a "contingency basis" meaning any fees owed will be covered by the defendant (the mortgage company) if you win the civil suit.
Where To Start
A claim based upon a TILA violation must be filed within 3 years of the inception of the loan. The first step is to confirm that your loan was originated in the last 3 years.
Next, gather all of your original loan documents and confirm that the following items were not disclosed in writing:
- Amount of money financed
- Total amount of periodic payments by borrower
- Total sales price (including periodic payments and down payments)
- Prepayment penalties
- Due dates and late charges
- Annual percentage rate (APR) and finance charges
- Service or application fees
- Expiration date of your "notice of right to cancel"
What Happens Next
If at all possible, continue to pay your mortgage. Even if you mail a portion of the mortgage payment (which many lenders do not like to accept), you are showing that you are attempting to pay. Call the mortgage company every day to request a loan restructure. While attempting to work with the mortgage company directly, contact a reputable attorney and share your desire to pursue a civil suit based upon the Truth in Lending violation.
If a TILA violation can be proven, the lender is legally required to void the deed of trust. The right for the lender to foreclose is halted. If the violation is discovered within 1 year of signing the loan documents, suing the lender for damages is an option (including the negative effect the late payments have had on your credit).
Resources
There are many resources to assist homeowners in their fight against foreclosure.
http://today.msnbc.msn.com/id/26184891/vp/29771503#29771503
https://www.naca.com
http://www.hud.gov/foreclosure/
http://www.acornhousing.org
http://www.financialstability.gov
*´¨`·.¸¸.* Ebony Ynobe *¨`·.¸¸.*
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