How You Can Stop Foreclosure Due To Predatory Lending Practices

You may believe that you did everything right, but you may later find yourself facing the foreclosure of your home. Unfortunately, many homeowners simply accept that they are being foreclosed on and don't realize that they may be the victims of predatory lending. If you are the victim of such a practice, you will want to contact a mortgage attorney as soon as possible.

Predatory Lending

When a mortgage lender deceives you into entering into a loan, this is referred to as "predatory lending." However, this means that you may be able to fight a foreclosure. The lender is not allowed to use aggressive sales tactics and is also not allowed to misrepresent the cost of the loan or the potential risks. You must be fully informed about your mortgage.

Even encouraging you to borrow more money than you could possibly pay back each month can be considered predatory lending. The lender should verify your income and make sure you can afford the loan. In some cases of predatory lending, the lender may even direct you to overstate your income to be approved for the loan.

What a Mortgage Lawyer Can Do for You

A mortgage lawyer might discover that you're the victim of an accounting error. When this happens, you may be able to take the lender to court and stop the foreclosure.

Lenders are not allowed to charge excessively high interest rates. If you believe that your interest rates are unreasonable, seek the opinion of a mortgage attorney. You may also be charged excessive amounts for other aspects of your mortgage such as for the appraisal, document preparation, and closing costs. Loan packing refers to when the lender adds unnecessary services such as credit insurance and doesn't tell you that they are not necessary.

Don't Be Mislead While Falling Behind

As you are falling behind on your mortgage, your lender might give you misleading options as to what you can do to save your home. Instead, speak with a mortgage attorney. The very fact that you are being misled can allow you to sue the lender for fraud.

The two best ways to stop a foreclosure are to file for bankruptcy and to file a lawsuit. Then, you will be able to remain in your home throughout the court proceedings. You may also receive damages that can come in the form of direct monetary compensation or past fees being waived.

To learn more, contact a mortgage attorney.