Mortgage Abuse: And You Really Thought the Lender Was On Your Side
While “Robo-signing” has made the headlines, many loan companies have identified methods to speed foreclosures and generate fees all payable by the homeowner. Many of the uppermost mortgage servicing abuses could be curtailed with a little research and caution by the potential home buyer.
Don’t allow yourself to get stuck on these scams.
Even if you make the payment on time, the loan company may “accidentally” reject the check — or apply it to a completely erroneous account. The outcome is unjustified late charges and frequently other penalties. Misdirected mortgages are a headache for homeowners, but for the finance company, they mean more income.
It is not permitted to bill the borrower when the finance business pays for property monitoring, but it happens; so too with other illicit
Lenders don’t like to lose so
Legal Rights Squelched
Loan companies frequently include “waivers” with modifications which tell the home buyer, “If you sign this change, you are giving up your right to use any legal action against us — not matter how wicked we get.”
Many mortgages include an escrow account for taxes that the lender is supposed to manage. When the banker doesn’t pay taxes or insurance bills on time, the
When lenders believe a
Every state has regulations overseeing the foreclosure procedure and when foreclosure can be begun. In the race to foreclose, some lenders ignore critical steps which are legally required.
Although difficult to accept, crazy foreclosures happen frequently. The lender initiates foreclosure processes despite the
Attorney Arkady Bukh advises Lenders sometimes fail to review important documents. Sometimes they even falsify court documents used to evict the home buyer. When bankers haven’t kept records, the owner is on the hook for legal fees, taxes and penalties.
The lesson in all this? Double check and re-read documents. Make a copy of everything connected with your mortgage so that if the lender claims to have misplaced something, you’re ready with a notarized copy.