Home Foreclosure Prevention Predatory Lending Litigation

San Fernando Valley Predatory Lending Litigation Lawyers

Don't Assume That Falling Behind on Your Mortgage Is Necessarily Your Own Fault

When lenders are too eager to make loans, they often willfully or unknowingly violate either the federal Truth in Lending Act (TILA) or the Real Estate Settlement Procedures Act (RESPA). The result can be a loan that the borrower cannot ultimately afford, and eventually results in foreclosure proceedings.

The following are some of the more common predatory lending practices to look out for:

  • Using false appraisals to sell property for more than it’s worth
  • Encouraging buyers to lie about their income, savings, cash available for down payment, etc. to get a better loan
  • Intentionally lending a borrower more money than they can afford to repay
  • Packing on of hidden and excessive fees
  • Loan flipping: frequent refinancing at no benefit to the borrower
  • Balloon loans: loans with low monthly payment that only address the interest, leaving the borrower with a huge payment on the principle in the end
  • Not disclosing the true costs and risks

These are just a few of the ways predatory lenders can victimize you. We urge you to avoid falling prey to them by:

  • Checking out other lenders and comparing costs
  • Stay away from fees that are more than three or four percent of your home mortgage loan
  • Check out the prices of other homes in the neighborhood
  • Avoid prepayment penalties in subprime loans
  • Hire a licensed inspector to inspect the property
  • Be suspicious of monthly payments that are too low
  • Consult a qualified attorney before signing anything

It's no surprise that foreclosure litigation is becoming more common now that it has been revealed that the poor lending practices of banks are so widespread. By reviewing your loan papers, Nader & Berneman can determine if violations of TILA or RESPA are evident, and provide recommendations on filing a lawsuit on your behalf.

Foreclosure litigation may help to:

  • Keep you in your house
  • Stop all foreclosure proceedings while the suit is pending
  • Prevent the lender from reporting negative information to credit reporting agencies
  • Result in damages being paid to you.

Most often these lawsuits do not go to trial, as foreclosure litigation makes the lender eager to renegotiate your loan when they realize how much is at stake. As with all legal options, you should seek qualified legal advice regarding foreclosure litigation.

If you have been served a notice of foreclosure proceedings, contact our Encino foreclosure lawyers immediately at (800) 568-0707 for a free consultation to explore options that you have to save your home.

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