Despite class action law suits, and enormous settlement amounts being paid out by the nations largest lenders, mortgage loan fraud is still a serious issue for many homeowners. You would think that having to pay billions of dollars for illegal foreclosures would make the banks restructure the way that they do business, but the truth is that the penalties handed down by the courts were the equivalent of a slap on the wrist. Lenders continue to post large quarterly increases in profits – being sued is just “part of doing business” for these lending giants, so they continue committing mortgage loan fraud against homeowners.
With so much fine print and endless amounts of documents to sign when applying for a home mortgage, it’s nearly impossible for anyone to truly understand all of the terms and conditions that they are agreeing to. Mortgage loan fraud could be hidden in the contracts that you originally signed when applying for the loan, but in most cases it doesn’t occur until there is an issue with payments.
Once a homeowner misses three payments on their mortgage, many banks will start the foreclosure process. This is when mortgage loan fraud typically occurs. Banks must follow strict laws, as out lined in SB 900, the California Homeowners Bill of Rights to not illegally foreclose on a property. These foreclosure laws are black and while, but often not adhered to – making it impossible for a homeowner to save their property from foreclosure.
Document All Communication With Your Lender
Get names, employee ID numbers, names of supervisors – anything you can when speaking with a representative from your mortgage lender about your loan. Better yet, confirm everything that you have discussed with your point of contact in emails or certified letters. These conversations are often times the root of mortgage loan fraud complaints, and can be the basis of a case should you have to sue the lender to prevent foreclosure.
One of the most prevalent mortgage loan fraud violations is dual tracking. This occurs when a lender moves a homeowner through the foreclosure process while they are in review for a loan modification. Other examples of mortgage fraud include, but are not limited to: not being given a single point of contact, rushing the foreclosure timeline, not properly issuing foreclosure notices, and general predatory lending practices.
Should You Contact the FBI?
While the FBI does consider mortgage loan fraud to be a white collar crime, most individuals don’t get the results they’re after by contacting the government agency. Hiring a mortgage litigation attorney that can sue the lender, help you keep your home, and in some cases even reduce your principal balance and monthly payments! Instead of contacting the FBI, get on the phone now for your free consultation with our mortgage lawyer who can help you!