In a home sale, a mortgage lender provides the financial resources for the borrower in a mortgage loan arrangement. The lender is typically a bank or a mortgage company, and often offers a variety of different loan products depending on the needs of the borrower.
Mortgage lenders are subject to various laws that are designed to protect the rights of the borrower. For instance, they aren’t allowed to discriminate against buyers based on their race, gender, etc., and they can’t engage in fraud when negotiating loan terms.
Mortgage lenders perform a variety of different tasks in association with mortgage loan documents and home purchases. Some of these tasks include:
- Providing finances for the mortgage loan
- Providing the borrower with different loan options and terms
- Researching market prices to determine loan product rates
- Advising potential buyers on loan repayment options
In most cases, mortgage lenders will present a mortgage loan repayment plan for the borrower. The repayment plan will be finalized into a contract, which may or may not be subject to adjustment in the future. In some cases, a mortgage lender may actually not be necessary for the sale, for instance where the seller is also the financer at the same time.
Usually, once a mortgage loan has been signed and finalized, it is considered to be legally binding. The parties will then be bound to the terms of the agreement as stated in the written contract.
However, it may be possible to dispute a loan agreement for certain reasons, including:
- The terms are found to be illegal or in violation of the law
- It is later discovered that the agreement was reached due to the use of fraud or coercion
- A court has ordered the parties to modify or adjust the contract
In such cases, it is usually necessary to enlist the services of a legal professional for help with the revision of the contract. A mortgage loan dispute may lead to a lawsuit resulting in a damages award to the plaintiff.
On the other hand, failure to payback a mortgage according to the terms of a valid loan can lead to other types of lawsuits. These may involve issues such as a mortgage lien dispute or a judicial sale of the home.
Dealing with a mortgage lender may be necessary during a home purchase, but you should also take steps to protect yourself. You may wish to hire a real estate lawyer to help you out during negotiations and signing of the contract. Your attorney can discuss your legal rights with you, and can review the agreement to ensure that it’s fair for both parties. In the event that you need to file a lawsuit over a mortgage issue, your lawyer can be on hand to represent you in court.