Archive for July, 2008

Truth In Lending Act – Help For Stopping Foreclosure

It may not be common knowledge but, many lenders shred all of their documents after a short period of time.  They do not want to store and have to retrieve the massive volume of documents they generate.  They rely on the herd instinct to blindly pay your payment to them.  There may be a filing of a legal document but that is insufficient to repossess or foreclose a home in many cases.  The lender must have the original note to legally foreclose your home.  The lender may be unable to provide these documents and will ask the courts for a waiver due to lost documents.

You may have to agree that the missing documents are indeed lost but there is the what-if someone produces the legal document later say, after the loan is paid off or the home resold; this can create a clouded title.

You could find that the party trying to foreclose your home is not entitled to because they do not have the correct documents to do so.  They may not even own the loan they are foreclosing.  You have to make a request for proof of ownership before the foreclosure takes place.  (See handbook for exceptions).

The lending industry has had major influence on legislation regarding the lending industry.  Naturally, they have provided all sorts of remedies for problem borrowers.  There are scant breaks in the laws for borrowers. Even if the lenders make blatant errors they can simply disclose this and make restitution “if they are caught”.

You can obtain an easy to read government document at : Truth In Lending Comptroller’s Handbook

This article is for informational purposes only and is not intended to provide legal advice.  Should you wish to act on any information provided here seek out the advice and counsel of an attorney in your State.

Leslie J West wrote this article and you can check back for updates to Stopping Foreclosure