Stop Foreclosure Using the Law
Here’s an idea some people have never thought about.
In some cases, you can use the law to help you stop your mortgage foreclosure; but you need to know what your options are and what you are looking for.
Your best bet is to contact a real estate attorney to look at the foreclosure documents you received from your lender; as well as the loan origination documents that you signed at closing for any mistakes.
The Truth in Lending Act may be the perfect ally for you to stop mortgage foreclosure if you want to call into question the validity of your mortgage loan.
If you want to go this route, you will need to prove that your originating loan documents were wrong. The area where this really comes into play is if your mortgage company made any mistakes in disclosing vital financial information required by law in your loan documents.
If this is the case, it is possible that your loan itself could be canceled. Here is where it is very important to have an attorney who is familiar with Regulation Z in the Truth in Lending Act.
Common mistakes in the Regulation Z of the Truth in Lending Act that could help you stop mortgage foreclosure that you might want to have your attorney look at on your loan documents include….
- Your mortgage company having more money in your escrow account than they are allowed.
- Not adjusting your ARM (adjustable rate mortgage) correctly.
- Not including referral fees to the originator of the mortgage.
- Not including information in the documents that describes how you can eliminate your private mortgage insurance.
If you are going to try to use the Truth in Lending Act to stop your foreclosure, you are going to need to make sure that your attorney goes through all of your loan origination documents with a fine-tooth comb.
Any errors, mistakes, or discrepancies could mean the difference between being able to stop foreclosure and losing your home.
Some other legal recourses that you may have available to you to stop your foreclosure include…
- If you can prove that your mortgage company lost any of your payments
- If you have an FHA-insured loan, you should have received information about preforeclosure counseling. This is required by law for FHA-insured loans.
- If your mortgage company accepted payment from you after foreclosure was filed on the home.
If you are looking for ways that will help you stop foreclosure, some of these legal avenues may be a viable option for you. Take the time and get a little more information on them to see if they can help you stop foreclosure.
