I’ve received a late payment notice from my bank, but I am on time with my mortgage payments. Can they legally foreclose on my home?
To foreclose on a property under existing Florida law, a lending institution must show not only a borrower’s default, but that the foreclosure is warranted under Florida’s laws of equity. If your lending institution cannot do this, they cannot foreclose on your mortgage.
Lending agents will typically not start foreclosure proceedings until you, as a borrower, have gone 3 months without making a mortgage payment, and have therefore defaulted. The 3-month rule, however, is not hard and fast and will depend on the lender.
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;
In a sign that more foreclosures could be on the horizon
This article, originally published on CNN Money gives excellent insight on how and why so many homes in the US are currently “under water” with regard to the value vs the amount owed to the mortgage lender. Personally I believe that there is a direct relation between certain areas of the country being heavily concentrated with Neg-Amm Loans or Pay Option ARM’s as to why these areas also have such high amounts of distressed properties. Read more below . . .
1 in 4 mortgages ‘underwater’
Report shows 10.7 million borrowers are stuck with homes that are worth less than the mortgages they owe.