Fighting against foreclosure by filing a Truth in Lending Act claim

Deciding to buy your own house could be the biggest choice you can make. Real estate is considered the most expensive high-value asset a person might buy in his entire lifetime. And so choosing to take out a mortgage loan for your house is definitely a huge decision that requires foresight and careful planning. A single mistake could mean a financial disaster. In some cases, it may ultimately lead to foreclosure.

According to the website of Gagnon, Peacock & Vereeke, P.C., having your single most valuable property foreclosed can be a traumatic experience. That’s why to avoid being deprived of a place you call home and to avoid damaging your financial standing, it is always wise to seek professional help when facing the threat of foreclosure.

A foreclosure could be wrong if the creditor failed to disclose pertinent information needed by the debtor in order to come up with an informed decision. A lender who fails to disclose all needed information related to the loan could be in violation of the Truth in Lending Act.

The Truth in Lending Act’s main purpose is to prevent borrowers from predatory practices of some creditors. These practices may cause the borrower to be stuck in an arrangement that would sooner or later make it impossible for him/her to repay the debt. Under this law, creditors are required to disclose its own identity, the amount of loan, and the total payment.

This law also requires them to disclose the loan’s annual percentage rate, and all information related to it, such as variable rates. Borrowers also have the right to know the total number of times s/he needs to make a payment to fully settle the loan. S/he also has the right to know any existing and possible financing charges and other penalties, such as for late payments.

Leave a Reply

Your email address will not be published. Required fields are marked *