• About
  • Buy Bankruptcy Adversary Package
  • Buy Foreclosure Defense Package
  • Contact Us
  • Donation
  • FAQ
  • Services

FightForeclosure.net

~ Your "Pro Se" Foreclosure Fight Solution!

FightForeclosure.net

Tag Archives: Adjustable-rate mortgage

Cosigning A Mortgage Loan: What Both Parties Need To Know

09 Tuesday Feb 2021

Posted by BNG in Banks and Lenders, Borrower, Credit, Foreclosure Defense, Mortgage Laws

≈ Leave a comment

Tags

adding co-borrower, adjustable rate mortgage loan, Adjustable-rate mortgage, applying for a mortgage, Borrower, borrowers, buying a house, Cosigning A Mortgage Loan, home buyer, home ownership, joint borrowers, loans, mortgage, Mortgage loan, purchase a new home, tenant in common

If you have  but still want to get a mortgage, adding a nonoccupant co-client to your loan can help convince lenders to give you a loan. But the decision to co-sign on a loan or add a co-signer to your loan isn’t one you should make without knowing all the facts.

Today, we’re looking at what it means to be a nonoccupant co-client on a mortgage loan. We’ll show you what co-signing means and when it’s beneficial. We’ll also introduce you to the drawbacks of being a nonoccupant co-client as well as some of your other options as a borrower.

Co-Signing A Mortgage Loan: A Look At The Process

Imagine you want to buy a home with a mortgage loan, but you have bad credit.

When you apply for preapproval, you find that lenders don’t give you the best interest rates. You may even have a hard time getting approval at all due to your credit score. 

You know that your mother has a credit score of 800, so you ask her to become a nonoccupant co-client on your loan application. She agrees and signs her name alongside yours on your applications.

Suddenly, you’re a much more appealing candidate for a mortgage. The lender considers both your income and your mother’s income when they look at your application.

They can also now pursue your mother for any payments you miss. Because the lender considers your mother’s finances, income, debt and credit when they look at your application, they decide to approve you for your loan.

From here, your mortgage loan generally functions the same way it would if you were the only person on the loan. You make a monthly premium payment every month to cover your principal, interest, taxes and insurance and you enjoy your home.

However, the lender may hold the nonoccupant co-client responsible if you miss a payment. This means your lender has the right to take your mother to court over your missed payments.

Co-signing isn’t just for mortgage loans. You may have a co-signer on personal loans, student loans and auto loans as well.

Whether or not you can have a nonoccupant co-client depends on the type of loan you take out. Nonoccupant co-clients are most common on two specific types of mortgages: conventional loans and FHA loans. Let’s take a look at the limitations for both types of loans.

Co-Signing A Mortgage Loan: A Look At The Process

Imagine you want to buy a home with a mortgage loan, but you have bad credit.

When you apply for preapproval, you find that lenders don’t give you the best interest rates. You may even have a hard time getting approval at all due to your credit score. 

You know that your mother has a credit score of 800, so you ask her to become a nonoccupant co-client on your loan application. She agrees and signs her name alongside yours on your applications.

Suddenly, you’re a much more appealing candidate for a mortgage. The lender considers both your income and your mother’s income when they look at your application.

They can also now pursue your mother for any payments you miss. Because the lender considers your mother’s finances, income, debt and credit when they look at your application, they decide to approve you for your loan.

From here, your mortgage loan generally functions the same way it would if you were the only person on the loan. You make a monthly premium payment every month to cover your principal, interest, taxes and insurance and you enjoy your home.

However, the lender may hold the nonoccupant co-client responsible if you miss a payment. This means your lender has the right to take your mother to court over your missed payments.

Co-signing isn’t just for mortgage loans. You may have a co-signer on personal loans, student loans and auto loans as well.

Whether or not you can have a nonoccupant co-client depends on the type of loan you take out. Nonoccupant co-clients are most common on two specific types of mortgages: conventional loans and FHA loans. Let’s take a look at the limitations for both types of loans.

Conventional Loans

If you want a nonoccupant co-client on a conventional loan, they need to sign on the home’s loan and agree to repay the loan if the primary occupant falls through. However, the non-ccupant co-client doesn’t need to be on the home’s title. The lender looks at both your credit and the nonoccupant co-client’s credit to determine if you can get a loan.

Lenders also consider you and your nonoccupant co-client’s debt-to-income (DTI) ratio when they look at your application. Every lender has its own standards when it comes to what they consider an acceptable DTI. Knowing both your own and your nonoccupant co-client’s DTI can make getting a loan easier.

FHA Loans

FHA loans are special types of government-backed loans that can allow you to buy a home with a lower credit score and as little as 3.5% down. If you want to get an FHA loan with a nonoccupant co-client (you can have a maximum of two), your co-client will need to meet a few basic criteria.

First, your co-client must be a relative or close friend. Mortgage lenders consider the following relatives as eligible to be non-occupant co-clients on FHA loans:

  • Parents and grandparents (including step, adoptive and foster)
  • Children (including step, adoptive and foster)
  • Siblings (including step, adoptive and foster)
  • Aunts and uncles
  • In-laws
  • Spouses or domestic partners

If the nonoccupant co-client is a close friend, you need to write an additional letter to your mortgage lender explaining your relationship and why your friend wants to help you.

Your nonoccupant co-client must also live in the United States for most of the year. They must have a DTI of 70% or less if you have less than a 20% down payment.

If you have more than 20% to put down, your co-client’s DTI can be anything. On an FHA loan, the nonoccupant co-client must be on the title of the home.

What A Co-Signer Is Responsible For

Before you agree to co-sign on a mortgage loan, it’s important you understand just how heavy of a burden this can be on you. As a nonoccupant co-client, you agree that you’re willing to take financial responsibility for the loan you co-signed on.

If the primary occupant misses multiple payments, you can easily become responsible for 100% of the loan value. It’s important to be careful when it comes to who you agree to co-sign for.

Make sure the primary occupant you’re vouching for has the means to pay the mortgage, insurance and maintenance fees for their new home. You should also make sure you have enough income to cover the payments if your primary occupant defaults.

There are a few additional things you can do to protect yourself against your primary occupant’s financial missteps. Here are the steps you should take if you agree to become a nonoccupant co-client on a mortgage loan:

  • Ask the primary occupant to give you online access to their mortgage statements.
  • Ask the lender to send you a notification immediately when the primary occupant misses a payment.
  • Set aside a monthly premium or two in your savings account in the event the primary occupant misses a payment.
  • Keep the lines of communication open with the primary occupant. Encourage them to be open and honest if they think they might miss a payment.

Most importantly, you should only become a nonoccupant co-client for people who you know are responsible. Never agree to co-sign on a loan for someone you just met.

Benefits Of Having A Co-Signer

Having a non-occupant co-client on your loan can make it much easier to get a mortgage. Here are a few of the benefits that come along with applying for a mortgage with a non-occupant co-client:

  • Looser credit score requirements: Your credit score plays a large role in your ability to get a mortgage loan. If you have bad credit, you may have trouble getting a loan. However, a nonoccupant co-client with a great score on your loan may convince lenders to be more lenient with you.
  • Assistance with employment requirements: Mortgage lenders need to see that you have a steady and reliable income before they’ll give you a loan. This can be a pain if you’re self-employed or if you had a recent gap in your resume. A nonoccupant co-client with a solid employment history can help you fill this requirement.
  • The potential for a larger loan: A nonoccupant co-client on your loan means the lender considers both of your incomes when they look at how much you can get in a loan. This can mean you may qualify for a larger loan. Of course, you should be absolutely positive you can make the payments before you accept the loan.

Drawbacks Of Co-Signing

As the nonoccupant co-client, co-signing on a loan comes with a number of risks including:

  • Potential responsibility for payments: If the primary occupant on the loan can’t come up with a monthly payment, you must pay it as the co-client. This premium will come out of your own pocket and you can’t refuse a payment.
  • Difficulty getting out of the loan: Once you co-sign on a mortgage loan, it’s very difficult to get out of it. Even if you have a falling out with the primary occupant, you’re still responsible for missed payments.
  • A legal tie to the loan: Becoming a nonoccupant co-client means you’re just as legally responsible for the loan as the person living in the house. If you fall behind on payment coverage, the lender may sue you for legal fees and the remaining balance on the loan.
  • Your credit may suffer: Co-signing on a loan puts your credit on the line. If the primary occupant misses a payment, your credit will suffer as well.

Alternatives To Having A Co-Signer

If you’re struggling financially and you can’t find someone willing to co-sign on your loan, there are still a few ways you can buy a home.

Explore Your Government-Backed Loan Options

In addition to FHA loans, there are other types of government-backed loans that can help you buy a home with lower requirements. Government-backed loans are special types of mortgages that have insurance from the federal government.

Government-backed loans are less risky for lenders, so they can extend them to people who normally wouldn’t qualify for a loan. FHA loans, VA loans and USDA loans each have their own qualification standards. Be sure you know all your loan options before you take a loan with a non-occupant co-client.

Use A First-Time Home Buyer Assistance Program

If you’re a first-time home buyer, you may qualify for an assistance program that can make buying a home easier. Home buying assistance can come from a state or local government, a federal program or a charitable or employer sponsor.

Depending on your circumstances, you may qualify for down payment assistance, a discount on a foreclosed home and/or tax breaks.

Many home buyer assistance programs are only available in certain areas. If you’d like to learn more about programs, loans and grants you may qualify for, start by visiting the Department of Housing and Urban Development’s (HUD) website.

Summary

Applying for mortgages with a nonoccupant co-client can help you buy a home with a lower credit score, less income, or a shaky work history. When you apply with a nonoccupant co-client, the person co-signing agrees they will take on your debt if you default.

While this makes you a much more appealing candidate for lenders, it’s risky for the co-signer. Depending on the type of loan you get, there may be limitations on who can be your non-occupant co-client.

If you want to buy a home without a nonoccupant co-client, you may want to research home buying assistance or government-backed loans. Both options can help you qualify for a loan with lower standards.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

If you are a homeowner already in Chapter 13 Bankruptcy with questionable liens on your property, you needs to proceed with Adversary Proceeding to challenge the validity of Security Interest or Lien on your home, Our Adversary Proceeding package may be just what you need.

Homeowners who are not yet in Bankruptcy should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

If you have received a Notice of Default “NOD”, take a deep breath, as this the time to start the FIGHT! and Protect your EQUITY!

If you do Nothing, you will see the WRONG parties WITHOUT standing STEAL your home right under your nose, and by the time you realize it, it might be too late! If your property has been foreclosed, use the available options on our package to reverse already foreclosed home and reclaim your most prized possession! You can do it by yourself! START Today — STOP Foreclosure Tomorrow!

Advertisement

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

What Homeowners Must Know About Foreclosure

12 Wednesday Sep 2018

Posted by BNG in Banks and Lenders, Credit, Federal Court, Foreclosure Crisis, Foreclosure Defense, Judicial States, Mortgage Laws, Non-Judicial States, Note - Deed of Trust - Mortgage, Pro Se Litigation, Real Estate Liens, State Court, Your Legal Rights

≈ Leave a comment

Tags

adjustable rate mortgage loan, Adjustable-rate mortgage, avoid foreclosure, bank forecloses, Deed in lieu of foreclosure, Foreclosure, Foreclosure Crisis, foreclosure defense, foreclosure suit, foreclosures, homeowners, Loan, Loan servicing, mortgage, Mortgage loan, Mortgage modification, non-judicial foreclosure, Pro se legal representation in the United States, Promissory note, Real estate, Real Estate Settlement Procedures Act, RESPA

Facing a foreclosure can be daunting prospect for people in trouble with their mortgages, especially when they are unsure of what to do. Across the country, six out of 10 homeowners questioned said they wished they understood their mortgage and its terms better.

When the economy collapsed in 2008, foreclosure became a fact of life for millions of Americans.  About 250,000 new families enter into foreclosure every three months, according to the Federal Deposit Insurance Corporation.

The same percentage of homeowners also said they were unaware of what mortgage lenders can do to help them through their financial situation.

The first step to working through a possible foreclosure is to understand what a foreclosure means. When someone buys a property, they typically do not have enough money to pay for the purchase outright. So they take out a mortgage loan, which is a contract for purchase money that will be paid back over time.

A foreclosure consists of a lender trying to reclaim the title of a property that had been sold to someone using a loan. The borrower, usually the homeowner living in the house, is unable or unwilling to continue making mortgage payments. When this happens, the lender that provided the loan to the borrower will move to take back the property.

How do Foreclosures Work?

People enter into foreclosure for various reasons, but it typically follows a major change in their financial circumstances. A foreclosure can be the result of losing a job, medical problems that keep you from working, too many debts or a divorce.

Foreclosures often begin when the borrower stops making payments. When this happens, the loan becomes delinquent and the homeowner goes into default. The default status continues for about 90 days. During this time, the lender will get in touch with the borrower to see whether they will be able to pay the balance of the loan.

At this point, if the borrower cannot pay, the lender may file a Notice of Foreclosure, which begins the process. The lender will file foreclosure documents in a local court. This part of the process usually takes 120 days to nine months to complete. If borrowers need extra time, they can challenge the process in court, and that’s where our Foreclosure Defense Package comes in.

How do Foreclosures Relate to Debt?

Some people facing foreclosure find themselves in this position because of mounting debt that made it harder to make their mortgage payments.

A foreclosure can add to your financial problems if your state allows a deficiency judgment, which means the borrower owes the difference between what is owed on the foreclosed property and the amount it eventually sells for at an auction.

Thirty-eight states allow financial institutions to pursue borrowers for this money.

In cases when a lender does not use a deficiency judgment, a foreclosure can relieve some of your financial burden. Although it is a loss when a lender takes the home you partially paid for, it can be a start to rebuild your finances.

It is a good idea to work with a financial adviser or a debt counselor to understand what kind of debt you may incur during a foreclosure.

What Else Should I Know?

If you are thinking about going into foreclosure, there are a number of things to consider:

  • A foreclosure dramatically affects your credit score. Fair Isaac, the company that created FICO (credit) scores, drops credit scores from 85 points to 160 points after a foreclosure or short sale. The amount of the drop depends on other factors, such as previous credit score.
  •  Get in touch with your lender as soon as you are aware that you are having difficulty making payments. You may be able to avoid foreclosure by negotiating a new repayment plan or refinancing that works better for you.
  •  States have different rules on how foreclosures work. Understand your rights and get a sense of how long you can stay in your home once foreclosure proceedings begin.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/loan

If you have received a Notice of Default “NOD”, take a deep breath, as this the time to start the FIGHT! and Protect your EQUITY!

If you do Nothing, you will see the WRONG parties WITHOUT standing STEAL your home right under your nose, and by the time you realize it, it might be too late! If your property has been foreclosed, use the available options on our package to reverse already foreclosed home and reclaim your most prized possession! You can do it by yourself! START Today — STOP Foreclosure Tomorrow!

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

What Homeowners Need to Know About Federal Laws that Govern Mortgage Origination and Servicing

10 Saturday Aug 2013

Posted by BNG in Affirmative Defenses, Banks and Lenders, Foreclosure Crisis, Foreclosure Defense, Fraud, Judicial States, Mortgage Laws, Non-Judicial States, Pleadings, Pro Se Litigation, RESPA, Your Legal Rights

≈ Leave a comment

Tags

Adjustable-rate mortgage, Closed End Credit, Finance, Finance charge, Loan, Security interest, Statute of Limitations, Truth in Lending Act

There are eight (8) major federal laws pertinent to mortgage origination and servicing.

                   Truth-in-Lending Act (TILA); 15 U.S.C. § 1638.

Purpose. TILA is largely a disclosure statute that requires that lenders make certain disclosures to borrowers and potential borrowers. The Act is meant to insure that borrowers are informed of all of the terms of the loan before they take out the loan and can make an informed decision.

Scope. TILA applies to consumer credit – both closed end credit (like mortgages) and open ended credit (like credit cards) – extended by a creditor.

To constitute as “consumer credit” under the statute:
• The consumer must be a natural person.

• Credit is the right to defer payment of debt or to
incur debt and defer payment.

• The credit must be payable, by written agreement, by more than four
installments or subject to finance charges.

Under TILA, a “creditor” is:

• An entity that regularly extends consumer credit. Regularly means six or
more real estate secured loans, two or more high cost loans (or one or
more if made through a broker), or 26 or more in other cases per year.

• The creditor is the entity to which the obligation is payable to on its face.
Arrangers, like brokers, are not covered by TILA.

Exceptions.

• Business, agricultural, organizational and commercial credit.
• Credit over $25,000 unless secured by real estate or a dwelling.
• Public utility credit in some instances.
• Securities or commodities accounts.
• Certain student loans.
• Home fuel budget plans if no finance charge is imposed.

Protections.

Fundamentals. Lenders must disclose the following terms and conditions:

1. Amount Financed The amount financed is the amount of money that the borrower receives for his own benefit. Generally, this would include the proceeds of the loan, the purchase price of the goods/services being purchased, and the amount of pre-existing debts being paid off by consolidation or refinancing. Amount financed is roughly the same as the concept of “principle” but it is distinct from how principle is construed under state usury laws.

2. Finance Charge. Any charge that a consumer pays, directly or indirectly,
that is charged by the creditor, directly or indirectly, as incident to or a condition of the extension of credit. Examples include interest, service charges, points, origination fees, and many other costs associated with credit.

3. Annual Percentage Rate (APR). The cost of credit as a yearly rate.

Required Disclosures for Closed End Credit – Failure to disclose the following terms and conditions gives rise to Statutory Claims.

1. Total Finance Charge. Consists of all finance charges as defined above.

Exceptions
a. Under certain conditions, charges by third parties, closing agent fees,
debt cancellation coverage, and overdraft fees.
b.Application fees so long as they are charged to all applicants, whether or
not credit is extended.
c. Late fees.
d.Certain closing costs, so long as they are bona fide and reasonable.
e. Voluntary credit life, health, accident and loss of income insurance so
long as the voluntary nature, cost and term are disclosed and the consumer
separately agrees to the insurance in writing.
f. Credit property insurance premiums so long as the consumer is aware
that he can purchase insurance elsewhere.
g. Certain security interest related charges.
h.Annual fees or fees periodically charged as a condition to credit.
i. Seller’s points.
j. Interest reductions in time deposits.

2. Amount Financed. The principle part of the loan minus all charges
deemed to be finance charges.

3. Annual Percentage Rate.
4. Payment Schedule.
5. Total Number of Payments.
6. Security Interests.
7. Special Formatting Rules.

The disclosures must be clear, obvious, separate from other information and in a form that the borrower can keep. Disclosures must be provided in a timely manner, in a way that the borrower can keep before the consummation of the loan.

Lenders must also give the borrower a Notice of Right to Cancel, which informs the borrower of his right to rescind and contains the forms that the borrower needs to exercise that right.

Relief and Statute of Limitations. Under TILA, the borrower has an absolute right to rescind for three business days after the consummationof the loan. After three business days, a borrower may have the right to rescind up to three years if the disclosures were not made to the client. Damages and attorney’s fees are recoverable under the statute.

Home Ownership and Equity Protection Act (HOEPA); 15 U.S.C. § 1639

Purpose. HOEPA is designed to protect all borrowers, but especially
borrowers that apply for and take out high cost loans. HOPEA is
associated with TILA and is often considered a part of TILA.

Scope. Same as TILA.

Protections. Special Disclosures for Variable Rate Closed End Loans (like
ARMS)

1. The lender must disclose the maximum interest rate that could be charged over the life of the loan in the loan note.

2. The lender must give the borrower a copy of the ARM brochure that contains generic information about ARMs as well as more specific explanations of the aspects of each variable rate plan that the borrower is considering.

3. These disclosures must be given when the application is furnished
or before the payment of a nonrefundable fee, which ever is first.

4. During the life of the loan, the lender must send rate adjustment
or change notices before the loan rate will change.

HOEPA prohibits prepayment charges and balloon payments in a limited amount of cases, higher interest rates after default, negative amortization, more than two payments being made from the loan proceeds, pattern/practice of extending credit without taking into consideration the borrower’s ability to pay, and payments directly to home improvement contractors.

Relief and Statute of Limitations. A party can recover damages and rescind under HOEPA. Attorney’s fees and costs are also available. The Statutes of limitations for affirmative actions is one year. For rescission, the statutes of limitation is three years.

Equal Credit Opportunity Act (ECOA); 15 U.S.C. § 1691

Purpose. The purpose of the ECOA is to stop discrimination in the lending industry.

Protections. ECOA has three important aspects:

1. First, it prohibits discrimination in any aspect of credit based on race, color, religion, national origin, sex, marital status, age, assistance income.

2. Second, the ECOA requires creditors to take specific actions when approving or denying credit, prevents certain factors from being used to determine creditworthiness, mandates when an existing account may be closed, and restricts the ways that information is reported to credit reporting agencies concerning spouses.

3. Third, the Act imposes certain notice requirements on the credit issuer
when a loan application is approved or denied. If the creditor makes a counter offer (for more or less credit), then it must notify the borrower in writing of the new terms.

   How ECOA Protection Can Be Applied to Foreclosure Fraud

Bait and switch tactics may give rise to a claim under the ECOA. If a creditor gives credit in a much larger amount than the borrower requested and never gives the borrower an opportunity to deny the additional amount, then the creditor violated the procedural terms of the ECOA by failing to provide the borrower with written notice of all action taken on the original loan application. This tactic is often used in predatory lending. A creditor will give more credit to pay borrower’s debts that the borrower expressed no interest in paying. The new amount is often disclosed too late in the process for the borrower to feel as if he can object.

Relief and Statute of Limitations. The ECOA allows home owners to pursue relief higher on the food chain than the original lender, and provides for actual and punitive damages (up to $10,000 in an individual action), equitable relief and attorney’s fees. The statute of limitations is one year.

Real Estate Settlement and Procedures Act (RESPA); 12 U.S.C. § 2601 et seq.

Purpose. The purpose of RESPA is to protect home buyers from
abusive practices in the residential real estate industry. The Act controls
the manner in which settlement services for a residential real estate loan are provided and compensated.

Scope. RESPA applies to federally related mortgages, meaning those made by federally-insured depository lenders, HUD-related loans, loans intendedto be sold on the secondary market to Fannie Mae or Freddie Mac or to creditors who make or invest more than a million dollars per year in residentially secured loans. Most home equity loans (as well as refinancings), mobile home purchase loans and construction loans are covered by RESPA. A loan for vacant land is excluded unless a structure will be constructed or a manufactured home will be placed on the property within two years of settlement of the loan. There are some exceptions to RESPA. If a lender makes a loan from its own funds, holds the loan for varying periods of time and then sells the loan on the open market, it is not covered. Also, certain lenders that originate loans through a computer system are generally exempt from RESPA’s requirements.

Protections. RESPA requires that no later than three business days after the application, the consumer must receive a “good faith estimate” of settlement costs (usually via the HUD-1 settlement statement) along with a booklet explaining the costs. At closing, all settlement agents must use the HUD-1 settlement kickbacks and unearned fees. No person shall give or accept any fee, kickback or gift for a referral of a settlement service. Additionally, RESPA requires servicers to notify consumers about the possibility that their mortgages may be transferred and when one is imminent, and to have a mechanism that allows borrowers to make inquiries about their account to a servicer and to have corrections made to
their accounts, if necessary. Servicers have a substantive duty to pay the property taxes, homeowner’s insurance and other escrowed monies to the appropriate recipients as long as the borrower is current. Further, RESPA limits the amount that a lender can require that a borrower place in escrow, and prohibits a lender or servicer from charging the borrower for the preparation of statements required by TILA, the HUD-1 settlement statement, or escrow account statement.

Statute of Limitations. The statute of limitations is one year except for servicer violations which has a 3 year limitation.

                      Fair Housing Act (FHA); 42 U.S.C. § 3605

Purpose. The FHA prohibits discrimination on the basis of race, color,
religion, sex, handicap, familial status, or national origin in the making of
or purchasing of residential real estate loans and any other related financial assistance.

Scope. The FHA applies to loan brokers, financing consultants and anyone else providing financial assistance related to the making of the loan as well as the secondary market in the purchasing of loans, debts or securities, thepooling or packaging of these instruments, and the marketing or the sale of securities issued on the basis of loans or debts.

Protection. To prove discrimination, the consumer must show that the defendants intentionally targeted on the basis of a protected class when trying to obtain credit or that there was a credit-grant policy that had a disparate impact on that basis.

Relief and Statute of Limitations. Under the FHA, the court can award actual and punitive damages, attorney’s fees and costs. The statute of limitations is two years from the occurrence or from the termination of the discriminatory practice for affirmative claims.

                         Federal Trade Commission “Holder” Rule

The FTC’s “Holder” rule, or the FTC Rule on Preservation of Consumers’ Claims and Defenses, allows a consumer to make a claim against a subsequent holder of a loan for the acts of the original lender. The original lender may be judgment proof, and it is unlikely that a consumer would effectively be able to defend against a collection action and bring an affirmative suit against the original lender. The rule creates an incentive for the lending industry to police itself and subsequent holders of a debt are in a better position to sue the original lender than the borrower.

Fair Debt Collection Practices Act (FDCPA); 15 U.S.C. § 1692 et seq.

Purpose. FDCPA restricts debt collector’s efforts to obtain payment and
to choose venue. The Act protects debtors from abusive or harassing
debt collection practices.

Scope. The Act is generally used in the non-mortgage context because mortgage servicers are exempt because they usually acquire servicing rights before the mortgage goes into default. A debt collector generally includes collection agencies, creditors using false names or collecting for other creditors, collection attorneys, purchasers of delinquent debts, repossession companies, and suppliers or designers of deceptive forms, but generally excludes companies collecting their own debts.

Protections. The Act protects the consumer from an invasion of privacy, harassment, abuse, false or deceptive representations, and unfair or unconscionable collection methods. Specific acts that are prohibited include late night or repetitive phone calls, false threats of legal action or criminal prosecution and communications with most third parties regarding the debt.

FDCPA provides the consumer the ability to stop all debt collection action with a letter, makes the collector deal with the consumer’s attorney if the consumer has one, and gives the consumer the right to dispute the existence, legality or amount of the disputed debt.

Relief and Statute of Limitations. The plaintiff can recover actual damages, statutory damages (up to $1000), attorney’s fees and costs and perhaps punitive damages and injunctive relief. Class actions are also authorized and the statute of limitations for all actions is one year for affirmative claims.

Racketeer Influence and Corrupt Organizations Act (RICO); 18 U.S.C. §§ 1961-1968

Purpose. RICO can be used to provide a civil remedy to abusive
consumer credit practices.

Scope. Any cause of action under RICO must have the following elements: the existence of an enterprise, the enterprise is engaged in interstate or foreign commerce, the defendant has engaged in one or more of four prohibited activities in section 1962, and the prohibited conduct cased injury to the plaintiff’s business or property.

Protections. Every RICO violation involves a collection of an unlawful debt (gambling debts or usury under state or federal law, at a rate at least twice the enforceable usury rate) or a pattern of racketeering activity. RICO can provide a remedy when a lender misrepresents that its rates are better than other lenders’ rates or that its loan will pay off other debts when it will
not. A well-plead allegation may state a claim for mail fraud in a loan flipping case under RICO. A borrower may also successfully plead a claim under RICO when there is a spread premium case where the payment of the premium is not revealed and the cost of the premium is passed onto the borrower in the form of a higher interest rate and where the broker represented that it would provide the lowest available rate, money was exchanged between the broker, the assignee, the funding lender and the title company and mail was used in furtherance of the scheme.

Remedy and Statute of Limitations. A person injured in his business or property can sue for treble damages but no physical or emotional damage claim can be made. The statute of limitations is four years in affirmative cases.

For More Information on How You Can Effectively Use Solid Arguments that are Structured on Your Lender’s Violations of Federal Laws, Which to Your Advantage, Will Subsequently Reduce Your Mortgage Payments and Save Your Home from Foreclosure Visit: http://www.fightforeclosure.net

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

Enter your email address to follow this blog and receive notifications of new posts by email.

Recent Posts

  • San Fernando Valley Con Man Pleads Guilty in Multi-Million Dollar Real Estate Fraud Scheme that Targeted Vulnerable Homeowners
  • Mortgage Application Fraud!
  • What Homeowners Must Know About Mortgage Forbearance
  • Cosigning A Mortgage Loan: What Both Parties Need To Know
  • What Homeowners Must Know About Filing Bankruptcy Without a Lawyer: Chapter 13 Issues

Categories

  • Affirmative Defenses
  • Appeal
  • Bankruptcy
  • Banks and Lenders
  • Borrower
  • Case Laws
  • Case Study
  • Credit
  • Discovery Strategies
  • Fed
  • Federal Court
  • Foreclosure
  • Foreclosure Crisis
  • Foreclosure Defense
  • Fraud
  • Judgment
  • Judicial States
  • Landlord and Tenant
  • Legal Research
  • Litigation Strategies
  • Loan Modification
  • MERS
  • Mortgage fraud
  • Mortgage Laws
  • Mortgage loan
  • Mortgage mediation
  • Mortgage Servicing
  • Non-Judicial States
  • Notary
  • Note – Deed of Trust – Mortgage
  • Pleadings
  • Pro Se Litigation
  • Real Estate Liens
  • RESPA
  • Restitution
  • Scam Artists
  • Securitization
  • State Court
  • Title Companies
  • Trial Strategies
  • Your Legal Rights

Archives

  • February 2022
  • March 2021
  • February 2021
  • September 2020
  • October 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • January 2019
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • September 2015
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013

Recent Posts

  • San Fernando Valley Con Man Pleads Guilty in Multi-Million Dollar Real Estate Fraud Scheme that Targeted Vulnerable Homeowners
  • Mortgage Application Fraud!
  • What Homeowners Must Know About Mortgage Forbearance
  • Cosigning A Mortgage Loan: What Both Parties Need To Know
  • What Homeowners Must Know About Filing Bankruptcy Without a Lawyer: Chapter 13 Issues
Follow FightForeclosure.net on WordPress.com

RSS

  • RSS - Posts
  • RSS - Comments

Tags

5th circuit court 9th circuit 9th circuit court 10 years Adam Levitin adding co-borrower Adjustable-rate mortgage adjustable rate mortgage loan administrative office of the courts adversary proceeding affidavits Affirmative defense after foreclosure Alabama Annual percentage rate Appeal Appeal-able Orders Appealable appealable orders Appealing Adverse Decisions Appellate court Appellate Issues appellate proceeding appellate record applying for a mortgage Appraiser Areas of Liability arguments for appeal Arizona Article 9 of the Japanese Constitution Asset Asset Rental Assignment (law) Attorney Fees Attorney general August Aurora Loan Services of Nebraska automatic stay avoid foreclosure Avoid Mistakes During Bankruptcy Avoid Mistakes in Bankruptcy bad credit score bank bank forecloses Bank of America Bank of New York Bankrupcty Bankruptcy bankruptcy adversary proceeding bankruptcy appeal Bankruptcy Appeals Bankruptcy Attorney bankruptcy code bankruptcy court Bankruptcy Filing Fees bankruptcy mistakes bankruptcy on credit report bankruptcy process Bankruptcy Trustee Banks Banks and Lenders Bank statement Barack Obama Berkshire Hathaway Bill Blank endorsement Borrower borrower loan borrowers Borrowers in Bankruptcy Boston Broward County Broward County Florida Builder Bailout Business Buy and Bail Buyer Buyers buying a house buying foreclosed homes California California Court of Appeal California foreclosure California Residents Case in Review Case Trustees Center for Housing Policy CFPB’s Response chapter 7 chapter 7 bankruptcy chapter 11 chapter 11 bankruptcy Chapter 11 Plans chapter 13 chapter 13 bankruptcy Chinese style name Chunking circuit court Citi civil judgments Civil procedure Clerk (municipal official) Closed End Credit Closing/Settlement Agent closing argument collateral order doctrine collection Collier County Florida Colorado Complaint Computer program Consent decrees Consequences of a Foreclosure Consumer Actions Consumer Credit Protection Act Content Contractual Liability Conway Cosigning A Mortgage Loan Counsels Court Court clerk courts Courts of Nevada Courts of New York Credit credit bureaus Credit Counseling and Financial Management Courses credit dispute letter credit disputes Credit history Creditor credit repair credit repair company credit report credit reports Credit Score current balance Debt Debt-to-income ratio debtor Deed in lieu of foreclosure Deed of Trust Deeds of Trust defaulting on a mortgage Default judgment Defendant Deficiency judgment deficiency judgments delinquency delinquency reports Deposition (law) Detroit Free Press Deutsche Bank Dingwall Directed Verdict Discovery dispute letter District Court district court judges dormant judgment Double Selling Due process Encumbered enforceability of judgment lien enforceability of judgments entry of judgment Equifax Equity Skimming Eric Schneiderman Escrow Evans Eviction execution method execution on a judgment Experian Expert witness extinguishment Fair Credit Reporting Act (FCRA) Fake Down Payment False notary signatures Fannie Mae Fannie Mae/Freddie Mac federal bankruptcy laws Federal Bureau of Investigation Federal Court federal courts Federal government of the United States Federal Home Loan Bank Board Federal Housing Administration Federal Judgments Federal Rules of Civil Procedure federal statute Federal tax FHA FICO Fictitious Loan Filing (legal) filing for bankruptcy Finance Finance charge Financial institution Financial reports Financial Services Financial statement Florida Florida Homeowners Florida Supreme Court Fonts Forbearance foreclose foreclosed homes foreclosing on home Foreclosure foreclosure auction Foreclosure Crisis foreclosure defense foreclosure defense strategy Foreclosure in California foreclosure in Florida Foreclosure laws in California Foreclosure Pending Appeal foreclosure process Foreclosure Rescue Fraud foreclosures foreclosure suit Forms Fraud fraud prevention Fraudulent Appraisal Fraudulent Documentation Fraudulent Use of Shell Company Freddie Mac fresh financial start Glaski good credit good credit score Good faith estimate Governmental Liability HAMP HAP hardship home Home Affordable Modification Program home buyer Home insurance homeowner homeowners home ownership Homes Horace housing counselor How Many Bankruptcies Can a Homeowner File How Much Debt Do I Need To File Bankruptcy HSBC Bank USA Ibanez Ibanez Case Identify Theft injunction injunctive injunctive relief installment judgments Internal Revenue Service Interrogatories Investing involuntary liens IOU issuance of the remittitur items on credit report J.P. Morgan Chase Jack Conway Jack McConnell joint borrowers JPMorgan Chase JPMorgan Chase Bank Juarez Judgment judgment creditors judgment expired Judgments after Foreclosure Judicial judicial foreclosures Judicial States July Jury instructions Justice Department Kentucky Kristina Pickering Landlord Language Las Vegas late payment Late Payments Law Lawsuit lawsuits Lawyer Lawyers and Law Firms Lease Leasehold estate Legal Aid Legal Aid by State Legal Assistance Legal burden of proof Legal case Legal Help Legal Information lender lenders Lenders and Vendors lending and servicing liability Lien liens lien stripping lien voidance lifting automatic stay Linguistics Lis pendens List of Latin phrases litigator load modification Loan Loan Modification Loan Modification and Refinance Fraud loan modification specialists Loan origination loans Loan Servicer Loan servicing Los Angeles loses Making Home Affordable Massachusetts Massachusetts Supreme Judicial Court Mastropaolo MBA Letter MBIA McConnell Means Test Forms Mediation mediation program Medical malpractice MER MERS Michigan Monetary Awards Monetary Restitution money Montana mortgage Mortgage-backed security Mortgage Application Fraud Mortgage broker mortgage company Mortgage Coupon Mortgage Electronic Registration System Mortgage fraud Mortgage law mortgage lender Mortgage loan mortgage loan modification mortgage loan modifications mortgage loans Mortgage mediation Mortgage modification Mortgage note mortgages Mortgage servicer Mortgage Servicing Fraud motion Motion (legal) Motion in Limine Motions National Center for State Courts National City Bank National Mortgage Settlement Natural Negotiable instrument Nelva Gonzales Ramos Nevada Nevada Bell Nevada Foreclosure Nevada mortgage loans Nevada Supreme Court New Jersey New Mexico New York New York Stock Exchange New York Times Ninth Circuit non-appealable non-appealable order Non-judicial non-judicial foreclosure non-judicial foreclosures Non-judicial Foreclosure States Non-Judicial States non-recourse nonjudicial foreclosures North Carolina note Notice Notice of default notice of entry of judgment Nueces County Nueces County Texas Objections Official B122C-2 Official Form B122C-1 Ohio Options Oral argument in the United States Orders Originator overture a foreclosure sale Owner-occupier Payment Percentage Perfected periodic payments personal loans Phantom Sale Plaintiff Plan for Bankruptcy Pleading post-judgment pre-trial Pro Bono Process for a Foreclosure Processor Process Service Produce the Note Promissory note pro per Property Property Flip Fraud Property Lien Disputes property liens pro se Pro se legal representation in the United States Pro Se Litigating Pro Se litigator Pro Se trial litigators Protecting Tenant at Foreclosure Act Protecting Tenants PSA PTFA public records purchase a new home Quiet title Real estate Real Estate Agent Real Estate Liens Real Estate Settlement Procedures Act Real property RealtyTrac Record on Appeal refinance a loan Refinance Fraud Refinancing registered judgment Regulatory (CFPB) relief remittance reports remove bankruptcy remove bankruptcy on credit report Remove Late Payments Removing Liens renewal of judgment renewing a judgment Reno Reno Air Request for admissions Rescission Residential mortgage-backed security Residential Mortgage Lending Market RESPA Restitution Reverse Mortgage Fraud Rhode Island robert estes Robert Gaston Robo-signing Sacramento Scam Artists Scope Secondary Mortgage Market Securitization securitized Security interest Se Legal Representation Self-Help Seller servicer servicer reports Services servicing audit setting aside foreclosure sale Settlement (litigation) short sale Short Sale Fraud Social Sciences Social Security South Dakota Special agent standing state State Court State Courts state law Statute of Limitations statute of limitations for judgment renewals statute of repose stay Stay of Proceedings stay pending appeal Straw/Nominee Borrower Subpoena Duces Tecum Summary judgment Supreme Court of United States Tax lien tenant in common Tenants After Foreclosure Tenants Without a Lease Tennessee Texas The Dodd Frank Act and CFPB The TRID Rule Thomas Glaski TILA time-barred judgment Times New Roman Times Roman Timing Title 12 of the United States Code Title Agent Tolerance and Redisclosure Transferring Property TransUnion trial Trial court TRO true owners of the note Trust deed (real estate) Trustee Truth in Lending Act Tuesday Typeface Types of Real Estate Liens U.S. Bancorp U.S. Securities and Exchange Commission UCC Underwriter Uniform Commercial Code United States United States Attorney United States Code United States Congress United States Court of Appeals for the First Circuit United States Department of Housing and Urban Development United States Department of Justice United States district court United States District Court for the Eastern District of California United States federal courts United States federal judge Unperfected Liens US Bank US Securities and Exchange Commission valuation voluntary liens Wall Street Warehouse Lender Warehouseman Washington Washington Mutual Wells Fargo Wells Fargo Bank withdrawal of reference write of execution wrongful foreclosure wrongful foreclosure appeal Wrongful Mortgage Foreclosure Yield spread premium

Fight-Foreclosure.com

Fight-Foreclosure.com

Pages

  • About
  • Buy Bankruptcy Adversary Package
  • Buy Foreclosure Defense Package
  • Contact Us
  • Donation
  • FAQ
  • Services

Archives

  • February 2022
  • March 2021
  • February 2021
  • September 2020
  • October 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • January 2019
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • September 2015
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013

Website Powered by WordPress.com.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • FightForeclosure.net
    • Join 338 other followers
    • Already have a WordPress.com account? Log in now.
    • FightForeclosure.net
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: