What can I do if my lender violated TILA?
There are several things you can do if a lender has violated the Truth in Lending Act (TILA), a federal law intended to protect borrowers and help them make informed decisions when dealing with lenders. It’s extremely important to be aware of your options as a borrower, specifically with regards to your mortgage.
Remedies for Truth in Lending Act Violations
When a creditor violates the Truth in Lending Act by failing to properly disclose information, your legal remedies include:
- rescinding your mortgage;
- consulting with a South Florida attorney to file a claim for damages;
HAMP and Other Foreclosure Options
The government’s Home Affordable Modification Program (HAMP) is available to help you avoid foreclosure, but to apply, you must meet certain criteria. To find out if you meet the criteria, you can take the online test on the HAMP website.
You will be asked the following 5 questions to help determine HAMP eligibility:
- Is your home your primary residence?
- Is the amount you owe on your fist lien mortgage no more than $729,750?
- Are you having trouble paying your mortgage?
- Did you obtain your mortgage before January 1, 2009?
Affordable Mortgages Under HAMP
If you have officially received approval for a loan modification under the Home Affordable Modification Program (HAMP), your loan servicer will make sure that your new monthly mortgage payment is no more than 31% of your monthly income.
The strategies used to lower your mortgage payment under HAMP include the following:
- Reduction of your interest rate – a rate as low as 2% is a possibility. In return for the low rate, the U.S. Treasury Department extends financial incentives to your loan provider. This doesn’t mean that everyone who qualifies for a HAMP loan modification will get 2% interest rates. If a 5% rate is sufficient to lower you mortgage to an affordable payment, then a 2% rate would not be necessary.
Overview of the Foreclosure Process in Florida (Part A)
When a mortgagor, such as a bank or other lending institution, successfully forecloses on your property, that lender takes full ownership of the property. The process, however, cannot begin until you fail to make your mortgage payments.
In Florida, a lender must use the judicial foreclosure process to seize a property and the foreclosure process must take place under Florida’s equity laws. If you have been served with a foreclosure notice, you have 20 to 60 days to take action before the bank seizes your home.
Florida Supreme Court Adopts Foreclosure Mediation Rules
Florida Supreme Court Adopts Foreclosure Mediation Rules
From : the Associated Press, Feb 11, 2010
Lenders will be required to pick up the tab for investigating and verifying ownership before foreclosing Florida home mortgages under new mediation rules.
The Florida Supreme Court adopted the rules Thursday in an effort to help the state’s judicial system better cope with a flood of such cases.
Florida Supreme Courts adopts ruling to force lenders into mediation in effort to reduce future foreclosures
Justices debate mandatory mediation to ease crisis
November 5, 2009
Daily Business Review
Authored by : Vanessa Blum
The Florida Supreme Court was asked Wednesday to adopt statewide mandatory mediation for residential foreclosures to help judges manage the flood of filings clogging courthouses.
The high court heard arguments on a task force report recommending mandatory mediation as part of a streamlined and uniform approach to the foreclosure crisis.
While questioning some specifics of the plan, justices seemed eager to help circuit courts deal with an onslaught of foreclosure cases — many involving unrepresented homeowners with a limited understanding of the legal process.