THE COMPLETE GUIDE TO Preventing Foreclosure on Your Home: Legal Secrets to Beat Foreclosure and Protect Your Home NOW by Martha Maeda & Maurcia DeLean Houck

Author:Martha Maeda & Maurcia DeLean Houck
Language: eng
Format: epub
Tags: home forclosure, prevent foreclosure, legal advice, mortgage payments, restructuring loans, bankruptcy, debt counseling, government programs
Publisher: Atlantic Publishing Group
Published: 2014-03-13T00:00:00+00:00

If the lender violates the terms of this act, it can be held liable for damages related to the debt as well as additional penalties of up to $1,000 and attorney’s fees incurred by the borrower.

How do I use it?

The best way to implement this defense is to know your rights under the act and keep careful records of all communications between yourself and the lender. The act also protects against harassment or abuse of the borrower by debt collectors or their agents.

Defense #8: Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) regulates how the three major credit bureaus collect and distribute information regarding your credit. Credit bureaus are subject to laws that govern how they disclose information and to whom.

What is it?

Credit bureaus are required to provide correct information to your lender from the origination of your loan throughout any further process with your lender, such as a refinance or loan modification. Your credit score affects the lender’s decision to accept your loan application and the interest rate you are charged. As the consumer, it is your responsibility to ensure that the information credit bureaus have about you is correct. Once you have been notified that a refinance or modification has been declined, you are entitled to view your credit report, possibly along with an explanation of why you were denied.

How do I use it?

If you find a discrepancy in your credit report, you must verify or dispute the information with the credit bureau. Once the credit bureau has been notified of the mistake, it cannot continue to knowingly report inaccurate information about your credit.

When you applied for your loan, you received a notice regarding the FCRA, which detailed how your credit score figures into the loan process and your responsibilities to maintain good credit and make sure that your credit report is accurate. If errors in your credit report have caused a lender to be unwilling to negotiate or have impeded your efforts to refinance with a new loan, you can challenge these decisions using the newly corrected credit report.

Defense #9: Real party in interest

So far, we have explored defenses that relied on technical errors: an omission of disclosures, a miscalculation of fees and interest, and even mistakes made by an outside party. This defense requires detective work, and if you succeed, it could keep you in your home for good.

What is it?

Mortgages are bought and sold frequently by banks and investors. A few years after you begin paying your mortgage, it is rare to have the same lender as you did on the day you closed on your home or when you refinanced. You have probably received notices when the lien holder has changed, and you may even have had to change where and how you send your payments. The terms of your loan remain constant throughout the changes in ownership of your mortgage.

You may not know that every time your mortgage changes hands, the lender is required to generate a written statement that ownership of the mortgage and promissory note has been transferred to the new lender.

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