Question:

How can borrowers stop predatory lending?

Answer:

Your home is being foreclosed on and you could still stop predatory lending. You could sue your lender for violations of federal laws such as the Truth In Lending Act (TILA), the Real Estate Settlement and Procedures Act (RESPA), HOEPA and individual state anti-predatory lending laws.

If you don't have binding mandatory arbitration clause, disallowing lender lawsuit, you could bring your lender to court and save your home. If your lender is found to have trespassed the law, you could win damages including excessive lender closing costs, legal fees, and can have your loan with another lender at better rates and terms.

If you were baited into a quick loan and several points to pay showed up right on the closing day, you are about to become a predatory lending victim. If the lender did not provide the required loan disclosures according to the Truth In Lending Act, this is another case when you could stop predatory lending from happening to you and use your right to rescind.

How much time do I have to sue and stop predatory lending?

Sometimes up to 3 years to take measures are allowed after completing the loan transaction. However, up to one year is the most common period allowed for borrowers to take legal action.  In case TILA was violated, the lender can be sued for twice the closing cost amount.

If you are facing home foreclosure, contacting a mortgage law attorney may help you find out whether the Truth In Lending Act was violated in your case and help save your house.

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