Disputes with a Mortgage Lender
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What is a Mortgage Lender?
A mortgage lender is a group or person that provides money to a borrower during the closing phase of a home sale. In exchange for the mortgage loan, the borrower gives their promise to repay, which can often be backed by a lien on the property. The repayment terms will depend on the specific terms listed in the mortgage contract.
Mortgage lenders are usually financial institutions or companies such as a bank or a mortgage company. A mortgage lender is different from a mortgage broker. As mentioned, the lender is the party that actually provides the loan money. A mortgage broker is party that offers the loan products of many different mortgage lenders. Lenders and brokers often work together along with other real estate agents.
What Legal Issues are There Dealing with a Mortgage Lender?
Mortgage lending is often a necessary part of a home sales transaction, as the average home buyer can’t really afford to make a full payment all at once. Mortgage borrowers should therefore be aware of some of the various legal issues associate with mortgage lender agreements.
Some issues to be wary of when dealing with a mortgage lender can include:
- Contract Disagreements: Every mortgage loan agreement should be formalized into a written contract. If you were not presented with a written document, or if you have any contentions over any terms in the contract, you may have a legal cause of action against the lender
- Lender discrimination: Lenders are generally prohibited from discriminating against lenders based on race, gender, national origin, and other factors.
- Predatory lending: Some fraudulent lenders may target first-time buyers, younger buyers, or elderly persons. Predatory lending is a major source of economic waste every year.
- Mortgage Fraud: Besides predatory lending, other types of mortgage fraud may arise, including the use of fake documents, or the use of fraudulent tax information
Mortgage lending agreements should therefore be carefully reviewed before signing them. During negotiations, it is important that the buyer raise any questions or concerns regarding the loan and the property involved.
What if I Have a Dispute with a Mortgage Lender?
Disputes with a mortgage lender may sometimes require legal action to be resolved. If you feel that you may have a dispute with a mortgage lender or lenders, you should try to take the following steps:
- Review your mortgage loan document - it will contain the relevant information that will be used if you’re planning to file with the court
- Compile other documents - you should gather all the documents related to the mortgage agreement and the home sale. These can include sale contracts, mortgage contracts, and other legal documents
- Obtain witness statements - you may wish to obtain statements from other parties that may have been involved, including the seller of the home and financial institutions
If you’ve suffered economic losses from the dispute, you may be entitled to a damages award. Another possible remedy may be that the court will allow you and the lender to rewrite the lending agreement to better reflect your needs regarding the arrangement.
Do I Need a Lawyer for Help with a Mortgage Lender Dispute?
The mortgage lending process can often be quite complicated, even for persons with a good credit background. You may need to hire a lawyer for assistance with the process. Your attorney can help review documents and assist you during negotiations. Also, in the event that you need to file a lawsuit, a competent attorney in your area can provide you with the representation needed to succeed on your claim.
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Last Modified: 05-27-2014 11:34 AM PDT
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