Are you a victim of a Predatory Lending Mortgage Foreclosure? You Can Stop
Help is available to borrowers who have claims against their lenders for
violating the Truth in Lending Act and other laws regulating credit
Such violations may be a defense to a mortgage foreclosure. If there is a
violation, you may be able to void the mortgage and apply 100% of your payments
to principal. You may also be able to recover money damages.
If the answer to any of the following questions is "yes," please arrange for
a professional auditor to review your loan documents (including demand and
collection letters, correspondence, and any account histories or monthly
- Have you repeatedly refinanced your loan? Was the last refinance within the
last 3 years? (A common predatory practice is "flipping," which involves
"repeatedly refinancing a mortgage loan without benefit to the borrower, in
order to profit from high origination fees, closing costs, points, prepayment
penalties and other charges, steadily eroding the borrower's equity in his or
- Did you increase rather than lower your rate upon refinancing?
- Are you paying an interest rate in excess of 9.5%?
- Was the loan obtained to pay for home improvement work that was not done
properly, or even at all?
- Have you had problems with the mortgage company regarding untimely posting
of monthly payments? Sudden increases in payments? Adding amounts to your
balance for insurance, "property preservation," or other "advances"? Does your
principal balance never seem to go down?
- Were you charged high closing costs (points and fees) on the mortgage?
- Did the terms of the mortgage change to your detriment at the last minute
before the closing?
- Did the lender pay money to your mortgage broker (look on your HUD-1
Settlement Statement for a "premium" or POC (paid out of closing) "YSP" or
"yield spread premium")?
- If you have an adjustable rate mortgage, were any adjustments done
improperly? Can you even tell if the adjustments were correct or not?
- Does your loan contain a prepayment penalty?
- Do you believe you were treated unfairly by your mortgage company? Has
correspondence with the mortgage company gone unanswered? (Mortgage companies
have a statutory obligation to respond to complaints and requests for
explanations of accounts. Often, they don't. Each failure may entitle you to
$2,000. If your claim against the mortgage company may exceed the number of
monthly payments you allegedly missed, the mortgage company may not be able to
prove that you are in default.)
- Did all collection letters sent to you by debt collectors comply with the
Fair Debt Collection Practices Act? (Up to $1,000 more if they did not.)
- Did you (or anyone else who has an ownership interest in and lives in the
house) receive a "notice of right to cancel" that was not completely filled out?
- Did you receive your copy of the loan documents at the closing (as opposed
to being sent to you later or did the closing agent send you signed copies at
- Did you sign a document at the closing stating that you were not canceling?
- Did the closing occur by mail, or at your home, or in another city?
There is a common assumption (among judges, borrowers, and the public) that
mortgage companies do not desire to foreclose and acquire real estate. This
assumption is no longer well founded.
There are an increasing number of "scavengers" that buy bad debts, including
mortgages, for a fraction of face value and attempt to enforce them. Such
entities profit by foreclosure. "Mortgage sources confide that some unscrupulous
lenders are purposely allowing certain borrowers to fall deeper into a financial
hole from which they can’t escape. Why? Because it pushes these consumers into
foreclosure, whereupon the lender grabs the house and sells it at a profit."
Robert I. Heady, The People’s Money, "Foreclosure, You Must Avoid It,"
South Florida Sun-Sentinel, Feb. 25, 2002. In addition, if the loan is
guaranteed (by private mortgage insurance or the government), a mortgage company
may find it more profitable to foreclose and make a claim on the guarantee.
By: Kenneth M. DeLashmutt "Predatory Lending Defense Specialist"
32 Foreclosure Cases Tossed Out of Court!
Federal Judge Chris Boyko tossed out 32 foreclosure cases in a mass dismissal
in Cleveland Ohio today because
banks and other lenders failed to file a complete set of documents
showing their claims were legitimate. See the full Story:
Cases Tossed Out
Must See Information About Robo-Signers and
Debtors Rights When Victim of Predatory
Call To Action For Foreclosure Defense
File Quiet Title Action on Foreclosed Homes
here to educate consumers and to help victims recover their losses and keep
their homes. If you are a victim of bank fraud or predatory lending, it
is possible to sue your lender for free clear title and money damages. We
show you how to stop foreclosure and sue your lender.
Our mission is to stop foreclosure and sue the lender for FREE clear title
and damages money.
It is possible to find out if you have broker fraud and/or TILA violations
with a simple 20 minute phone call.