How Can Forensic Loan Auditing Help My Illinois Foreclosure Case?

 Posted on October 06, 2020 in Foreclosure

Buying your first home can be exciting, but it can also be overwhelming to take on such a major responsibility. Regardless if you are single or married, it is important to carefully consider your mortgage and what you can afford in terms of a loan. During the COVID-19 pandemic, many people have been furloughed or laid off from their jobs for an indefinite period of time. Although they may be entitled to unemployment, those funds may not cover their monthly mortgage payment. The federal government has issued protections for tenants and mortgage loan borrowers under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. However, once this moratorium expires, home owners may still be struggling to keep afloat financially if they cannot return to work. Forensic loan auditing can help reveal any violation of the law with regard to the loan package. An experienced attorney can help determine if this specific type of auditing can help in your foreclosure defense. 

Uncovering Violations in Your Loan Package

The Truth in Lending Act (TILA) was created by the federal government to ensure that consumers are given accurate information when they enter into credit transactions. TILA covers credit loans, including mortgages, home equity loans, and credit cards. The disclosures by lenders should be consistent and standardized, but unfortunately, this is not always the case. If the creditor does not disclose pertinent data to the borrowing party, the creditor may be liable to pay damages to the borrower.
Examples of common loan violations may include any of the following:

• Truth in Lending Act violations: This occurs when a creditor fails to disclose information in writing regarding the terms of a loan or any type of credit transaction. 
• HUD violations: The U.S. Department of Housing and Urban Development (HUD) regulates the housing industry. Housing providers, including landlords or management companies that refuse to rent or sell dwellings to people based on race, color, nationality, religion, sex, familial status, or disability are in violating of federal law.
• Interest rate violations: When the terms of your loan, such as the interest rate and structure (fixed, adjustable, balloon) are not fully disclosed, this may be considered a violation. Many first-time homeowners do not realize that their mortgage payments can go up substantially once the term ends.   
• Predatory lending practices: In some cases, lending institutions engage in unethical actions in order to obtain business. This may include charging excessive or hidden fees, not disclosing appropriate information, or not notifying borrowers of their right to cancel a loan.

An attorney can help uncover the above violations and assist you with defending your home foreclosure by holding those accountable. In certain situations, you may also be eligible for remedies such as a loan modification or mortgage relief programs. 

Contact a Grayslake Foreclosure Defense Attorney

The thought of losing your home that you worked so hard for can be devastating. That is why it is critical that you understand how foreclosure works and determine if your rights were violated and what to do next in order to keep your house. A skilled Lake County loan modification attorney from Newland & Newland, LLP will thoroughly explain the legal options available to you depending on your situation. To discuss the details of your case, call our office today at 847-549-0000 to arrange a free consultation.

Sources:

https://www2.illinois.gov/sites/gac/OSG/Pages/Guardianship-Fact-sheet.aspx

https://www.hud.gov/program_offices/fair_housing_equal_opp/examples_housing_discrimination

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2322&ChapterID=67