what attorney handles problems with loan documents

Full Answer

How can a financial services lawyer help me with debt?

Debts and Collections: A financial services lawyer can give you advice about debt and collection laws. An experienced lawyer can make sure that any debt collectors are following the rules for collecting debt. Also, they will know about the specific rules under The Fair Debt Collection Practices Act (“FDCPA”).

What can our mortgage attorney do for You?

What Our Mortgage Attorney Can Do for You. When you hire Consumer Action Law Group as your mortgage lawyer to sue your lender, we tailor your litigation case to your situation. Our mortgage attorney will identify bad acts by the lender such as: Accounting errors. Delays in the modification process.

Who writes the loan documents for a loan?

Loan documents are usually written by the banks and other lenders. They are skewed in favor of the lender and against the borrower. Often borrowers don’t review the boilerplate language in their loan agreements.

What do mortgage fraud lawyers see in a fax?

Our mortgage fraud lawyers often see a pattern of unreasonable delay; lenders repeatedly losing documents, representatives telling you that your fax was not received, placing you on hold for hours or simply not responding to your many calls.

Can you sue a loan servicer?

You can also sue. According to HUD, "A borrower may bring a private law suit, or a group of borrowers may bring a class action suit, within three years, against a servicer who fails to comply with Section 6's provisions." You can also file a complaint with the government agency that regulates the servicing agent.

Can you sue an underwriter?

Liabilities that mortgage underwriters can face will often include legal issues, such as fraud, unfair business practices, misrepresentation, false advertising, and other similar claims. Depending on who authorized the harmful action, an individual underwriter, the lending company, or both can be held liable.

Can you sue the bank for their mistake?

If you think a bank has been unfair or deceptive in its dealings with you, or has violated a law or regulation, you have the right to file a complaint. The Federal Reserve is particularly concerned that state member banks comply with federal laws and regulations that prohibit discrimination in lending.

Can you sue a mortgage company for lying?

Basically, if you lie on your mortgage loan application, you may be charged with the crime of mortgage fraud. Additionally, mortgage lenders may also be charged with mortgage fraud, such as forging a mortgage contract.

Can a loan officer override an underwriter?

Though you can't usually speak directly to an underwriter, your loan officer should give you a clear reason for the denial. You'll have a short time to try to overturn the denial — it doesn't become official until the lender issues a denial letter.

Can I speak to the underwriter?

Underwriters Cannot Directly Ask You Anything It is important to note that underwriters should not be in actual contact with you. All questions and discussions should be handled through your lender or loan officer. An underwriter talking to you directly, or even knowing you personally, is a conflict of interest.

What is bank negligence?

Malpractice in banking occurs when a professional within banking, for instance, is negligent in their work, and, in turn, bring some form of harm to their client's assets.

What does a banking lawyer do?

A financial services lawyer is a lawyer who practices within the financial industry. This includes areas like retail and investment banking, derivatives, capital markets, structured finance, funds, asset management, insurance, stock brokerages and any other business that deals with the management of money.

What is Banker responsibility in case of negligence?

“A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or especially to him shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.”

What is respa in mortgage?

Real Estate Settlement Procedures Act. RESPA seeks to reduce unnecessarily high settlement costs by requiring disclosures to homebuyers and sellers, and by prohibiting abusive practices in the real estate settlement process.

What happens if lender missed closing date?

What happens if the lender misses the closing date? If the lender doesn't approve your loan by the closing date, then the purchase contract may expire. The seller might agree to push back the closing date to allow you more time to get your loan, but they don't have to.

Why is my mortgage lender stalling?

Sometimes this happens because the loan officer has submitted your loan application to underwriting and it can take several days or several weeks for the underwriter to process your loan, depending on the type of loan, how busy the lender is and the complexity of your application.

What happens if you fall behind on your SBA loan?

Once you are in default on your loan, the interest and fees start to accrue. If your account has been turned over to a third-party collection agency as a result of non-payment, then the collection fees can be added to the balance. If the collection agency or the Treasury Offset department is unsuccessful in collecting what you owe, then the US Treasury can then and add up to a 28% penalty fee on top of what you owe. The costs will add up rather quickly so the quicker have us arrange for a settlement payoff, the fewer fees that will accrue thereby saving you from the power of compounding interest working against you.

What is a deferment on a SBA loan?

A deferment is a way to postpone your scheduled loan payments for a specified period of time – which can vary from case to case. The SBA Loan Deferment option is for business owners that are experiencing short-term issues with cash flow. You will need to be able to show that your business will need a deferment but also that your company is able to repay the amount owed. Keep in mind if you wish to defer your payments unless agreed upon, the interest will continue to accrue on top of the outstanding balance.

Can the SBA garnish your salary?

Your personal wages or assets may also be at risk. The SBA can attach more forms of income than other types of creditors you may owe can. A judgment creditor can put a lien on your property, a levy on your bank account, or garnish your salary and the SBA can do the same.

Can a SBA loan be discharged?

SBA loans can be discharged through bankruptcy. Whether or not the bankruptcy is filed personally or for your business will determine the result of how the discharge will affect your liability. Many SBA loans have personal guarantees which lead many business owners with little personal assets to file for personal bankruptcy. If you are a business owner and want to file for personal bankruptcy, your obligation to pay back the loan will be discharged; however, the liability for the business remains. The SBA can enforce its claim on any collateral pledged to secure the loan – through seizure or repossession of business assets. If a business bankruptcy is filed, it needs to be considered if your business can still function and operate on a daily basis. Among many other factors to be discussed range anywhere from:

What is unauthorized practice of law in Texas?

Texas is an “unauthorized practice of law” state requiring that documents which pertain to the conveyance of real property be prepared or reviewed by a licensed Texas attorney. The loan document package is reviewed for accuracy and compliance. The title commitment, survey, and contract are reviewed for defects or issues ...

Does Polunsky Beitel Green review mortgages?

For those clients who prefer to use their own documents, Polunsky Beitel Green, provides a review of Texas mortgage loan closing packages by our staff of mortgage professionals. The Note, Security Instrument, and any applicable Riders for Texas loans are reviewed to comply with Texas law. Texas is an “unauthorized practice of law” state requiring that documents which pertain to the conveyance of real property be prepared or reviewed by a licensed Texas attorney.

What are the legal issues with a mortgage lender?

As noted above, numerous legal issues can arise when dealing with a mortgage lender, most commonly due to a breach of the loan agreement. A loan agreement is similar to any other contract; this means all breach of contract reme dies are available, should a party breach the contract. Common examples of legal issues that may arise when dealing ...

What are some examples of legal issues that arise when dealing with a mortgage lender?

Common examples of legal issues that may arise when dealing with a mortgage lender include, but are not limited to the following: Foreclosure: The most common legal issue that arises between a mortgagor and mortgagee is when the mortgagor is behind on making payments on the mortgage, which leads to foreclosure .

What is the role of a mortgage broker?

The broker’s role is to assist the borrower by researching multiple loan options from many lenders and helping them find the best loan for them.

What is foreclosure in mortgage?

In short, foreclosure is the process where the lender takes the borrower’s property and sells the property at a public auction in order to satisfy the borrower’s debts; Mortgage Fraud: Mortgage fraud occurs when false or incorrect information is provided on a loan application.

What is predatory lending?

Predatory Lending: Mortgage lenders sometimes target susceptible buyers, such as first-time borrowers or elderly borrowers, and offer them loans at abusively high interest rates or unreasonable loan terms ; or.

What is a mortgage lender?

A mortgage lender, also known as a “mortgagee,” is a person, group of persons, or a company, that provides money to a borrower, also known as a “mortgagor,” to purchase a home. Typically, mortgage lenders are financial institutions, such as a bank or mortgage company. However, there are some individual mortgage lenders.

What is rewriting a mortgage contract?

Rewriting the mortgage contract to better reflect the parties agreement; or. Ordering specific performance under the contract. For example, in the case of an accidental foreclosure, the court may order that the foreclosure process and result be rescinded.

What happens if you fall behind on your mortgage payments?

You fell behind on mortgage payments and your lender is giving you misleading information about your options to save your home. You have applied for a loan modification and your lender is sending you foreclosure notices at the same time. Your lender lied to you about stopping foreclosure while you were being reviewed for a modification.

What is foreclosure fraud?

We often find that foreclosure fraud occurs when lenders violate the law by creating unconscionable loan terms. Mortgage litigation empowers the homeowner to take the lender to court. The homeowner can no longer be ignored or strung along until the lender decides to foreclose.

What is lender liability?

Typically, lender liability claims arise when a financial institution or fiduciary violates a duty of good faith or fair dealing to its customer – borrower or has assumed such a degree of control over the borrower that it assumes a fiduciary duty.

Can law firms sue banks?

Most law firms are not competent to sue banks either due to inexperience (commercial loans, mortgage commitments, loan securitization issues, and CMBS problems are a complex and evolving field) or level of resources (banks put unlimited money into herds of lawyers who create more paper than the New York Times) available;

Do banks care about interest?

Banks and private lenders in these situations often DO NOT CARE ABOUT INTEREST. They care about WINDFALLS – usurious compounding fees and interest, plus, ideally for them – taking away a valuable asset – your company, your buildings, your money; at a fire sale price.

What is the lender – borrower relationship?

The lender – borrower relationship often begins when the borrower submits a loan application. The law, however, was that the lender owed no special duty during the application and origination process. Only when a commitment letter was issued was there the potential for the borrower to sue the bank under some theory of lender liability.

How many pages are there in a commercial loan?

Today’s commercial loan documents often contain 1000 or more pages. If the loan is part of a securitized portfolio (commercial mortgage backed securities), the pooling and servicing agreements are often over 600 pages.

What is a breach of fiduciary duty?

Wrongful interference with a borrower’s day-to-day activities or the borrower’s contractual relations with third parties; Breaching a fiduciary duty that the lender may have assumed with respect to the borrower.

Why isn't a loan commitment enforceable?

Breach of loan commitments. As market conditions change, some lenders will claim their loan commitment isn’t enforceable because it lacks certain terms. Banks will also attempt to add new and onerous conditions simply to force the borrower to walk away from the loan.

Can you default on a loan even if you have no insurance?

It is entirely possible to be commit numerous defaults even though no payments, taxes or insurance payments were ever late. Some lenders encourage borrowers to default simply so the loan can be transferred into special servicing. There is usually a promise that better terms can be negotiated once a loan is in default.

Can a lender use an insecurity clause to accelerate a loan?

Beyond the protections of the Uniform Commercial Code, courts have said that lenders can’t use an insecurity clause to accelerate a loan if the bank has itself engaged in fraudulent conduct.

Who is the proper entity to initiate a foreclosure?

Standing issues have spawned an evolving body of law in which borrower’s counsel must force lenders, noteholders (typically trusts) and servicers to answer and prove the following: Servicer or noteholder is the proper entity to initiate a foreclosure. Actual possession of the note and mortgage.

How to resolve a government issue?

You can resolve your issue in one or more ways, by: filing a complaint with the appropriate government agency or consumer organization. going to small claims court, or. hiring a lawyer to file a lawsuit. Read on to learn about these options and then begin with the best solution for your situation. Many government agencies ...

What is a BBB complaint?

You can also file a complaint with your local Better Business Bureau (BBB), a private, nonprofit organization. The BBB helps settle disputes that involve products or services, whether or not the business is accredited with the BBB. The BBB forwards your complaint to the business and gives it a chance to respond.

Does the CFPB advocate for you?

The CFPB will facilitate a resolution to your complaint, but it won’t advocate for you. Here’s how the process works: The CFPB will forward the complaint to the company. The company reviews the complaint and reports to the CFPB on what steps it has taken, or will take, to settle the issue you raised.