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How To Fight Back Against Foreclosure In St. Paul, MN
Attorneys in the state have helped homeowners, who are now facing Foreclosure St. Paul MN, to fight against predatory lending practices. New national laws force lenders to disclose the exact terms of each mortgage and establish affordability before approving the loan. However, some homeowners have fallen through the cracks and may lose their home. This is the case for low-income buyers who acquired their home mortgage before the legislation was passed and are now victims to this injustice. Browse website for more details.
How to Fight Back Against Foreclosure
The first step is to request a loan modification which could present the borrower with a more affordable option. This will allow the homeowner to submit lower payments and avoid foreclosure. The attorney could require the lender to transform it into a fixed-rate mortgage in which the interest rate will not increase or decrease over time. However, this option is not available when the lender utilized predatory lending practices. Luckily, for the homeowners, attorneys are trained to identify fraud in mortgage documentation.
When the attorney determines that the lender committed fraud, he or she can initiate litigation against this lender. Fraud in lending encompasses actions such as adding a fake co-signer to the loan, excessive late charges that are more than the standard requirement, and the refusal to provide a lower interest rate when it is available to the borrower. Unethical lenders also add a balloon payment to the end of the mortgage and charge a penalty to homeowners who pay off their mortgage sooner than the final installment listed on the documents.
National laws such as the Equal Credit Opportunity Act and the Home Ownership and Equity Protection Act govern the ways in which lenders provide financing. They protect against excessive fees and interest rates imposed on mortgages that are based on discriminatory practices. The laws also enforce the full disclosure of the terms to the borrower. When an attorney discovers a violation of these laws or any legislation that protects against predatory lenders, he or she can aid the homeowners in filing a lawsuit against the lender. Any homeowner who is a victim to predacious lending practices and is now facing Foreclosure St. Paul MN, may contact the Lamey Law Firm for legal assistance or advice.