why would the lender contact me and not my lawyer

If the debt collector knows that an attorney is representing you about the debt, the debt collector must contact your attorney and cannot contact you. The CFPB’s Debt Collection Rule clarifying certain provisions of the Fair Debt Collection Practices Act (FDCPA) became effective on November 30, 2021.

Full Answer

What are the legal issues when dealing with a mortgage lender?

As noted above, numerous legal issues can arise when dealing with a mortgage lender, most commonly due to a breach of the loan agreement. A loan agreement is similar to any other contract; this means all breach of contract remedies are available, should a party breach the contract.

What to do if you have a dispute with a lender?

Disputes with a mortgage lender may sometimes require legal action to be resolved. If you feel that you may have a dispute with a mortgage lender or lenders, you should try to take the following steps: Collect other documents - you should gather all the documents related to the mortgage agreement and the home sale.

How to deal with a loan officer who won't talk to me?

Again, I would contact the broker in charge of that loan officer and see if he/she can expedite the process. Just like the LO doesn't want to talk to you for fear of being in trouble, they likely don't want to talk with the boss. You talk to the boss and see if it helps.

Are your lenders asking you inappropriate questions?

Every borrower today needs to be prepared to answer almost anything a mortgage lender asks, but if you feel you are being asked inappropriate questions you should ask your lender some questions in return and perhaps find another lender.

How do you know if a lawyer is scamming you?

How To Avoid Legal Representation ScamsPayment needs to happen quickly. You can't ask questions or get clarification.It's an emergency. Someone may threaten you or your loved ones.Requests for money usually happen over text, email or phone.The person contacting you is not someone you recognize.

Should I have a lawyer look at my mortgage?

It's best to have a professional look over your mortgage agreement before you sign. Even if you trust the people you are dealing with, closing on a home is complicated.

What are reasons to sue a mortgage company?

As mentioned above, if your mortgage lender commits negligence, you may sue your mortgage lender. Examples of this can include where they negligently fail to include terms in the loan agreement that were agreed to by both parties, or if they breach their fiduciary duties.

Can a lender sue a borrower?

Breach of contract – Lenders have long used civil lawsuits to sue borrowers who breached loan agreements. With the rise of lender liability, borrowers now also have a right to sue lenders who breach contractual obligations established in a loan agreement, such as failing to honor a loan commitment.

Do you need a lawyer to make an offer on a house?

When do I need to contact a Conveyancing Lawyer? While you definitely need a lawyer to complete the settlement of your sale, you technically don't need a lawyer to sign a 'Sale and Purchase Agreement'. However, it's wise to speak to your lawyer as soon as you have decided to put your property on the market.

What do real estate lawyers do?

Commercial property (or real estate) lawyers act for a variety of domestic and international clients – including investors and developers, governments, landowners and public sector bodies – on a wide range of transactions, involving everything from offices to greenfield and retail developments, infrastructure projects ...

How do you fight a mortgage lender?

If you have a problem with your mortgage, you can submit a complaint online or by calling (855) 411-CFPB (2372). If you're facing imminent foreclosure or have been served with legal papers, you may also need to consult an attorney.

Do mortgage companies make mistakes?

Mortgage servicers sometimes make serious errors when handling a homeowner's loan account. Fortunately, a federal law, the Real Estate Settlement Procedures Act (RESPA), provides a way for you to make the servicer correct the error if you believe it made a mistake when managing your mortgage payments.

Can a mortgage company refuse payment?

Your mortgage company may refuse payment from you if they have started the foreclosure process. They may attempt to collect the full amount of arrears that you owe to bring your account up to date. If you go to court, you can force the lender to accept payments and start a payment plan to catch up.

What is a major consequence of failing to pay back a loan on time?

A significant drop in your credit score (as much as 110 points from just one missed payment) Trouble securing credit in any form for years to come. Difficulty locking in a good interest rate even if you're able to secure credit in the future.

What are the rights of a lender?

Lender has the right to obtain information on Borrower's operations, financial activities, inventory, use of the loan, etc., and request Borrower to provide documents, materials and information such as financial statements. Lender's Rights and Obligations.

What is the one action rule?

The One-Action Rule, as codified under California Code of Civil Procedures Section 726(a), requires a lender to foreclose on the real property securing its debt before enforcing other available remedies against a defaulting debtor.

What are the legal issues with a mortgage lender?

As noted above, numerous legal issues can arise when dealing with a mortgage lender, most commonly due to a breach of the loan agreement. A loan agreement is similar to any other contract; this means all breach of contract reme dies are available, should a party breach the contract. Common examples of legal issues that may arise when dealing ...

What are some examples of legal issues that arise when dealing with a mortgage lender?

Common examples of legal issues that may arise when dealing with a mortgage lender include, but are not limited to the following: Foreclosure: The most common legal issue that arises between a mortgagor and mortgagee is when the mortgagor is behind on making payments on the mortgage, which leads to foreclosure .

What is the role of a mortgage broker?

The broker’s role is to assist the borrower by researching multiple loan options from many lenders and helping them find the best loan for them.

What is a breach of contract claim?

Typically, the claim that you will file against the mortgage lender will be based on a breach of contract theory, where you will seek to recover any economic losses that you may have suffered. Additionally, breach of contract remedies may include remedies in equity, such as: Cancelling the mortgage contract; Rewriting the mortgage contract ...

What is foreclosure in mortgage?

In short, foreclosure is the process where the lender takes the borrower’s property and sells the property at a public auction in order to satisfy the borrower’s debts; Mortgage Fraud: Mortgage fraud occurs when false or incorrect information is provided on a loan application.

What is predatory lending?

Predatory Lending: Mortgage lenders sometimes target susceptible buyers, such as first-time borrowers or elderly borrowers, and offer them loans at abusively high interest rates or unreasonable loan terms ; or.

What is a mortgage lender?

A mortgage lender, also known as a “mortgagee,” is a person, group of persons, or a company, that provides money to a borrower, also known as a “mortgagor,” to purchase a home. Typically, mortgage lenders are financial institutions, such as a bank or mortgage company. However, there are some individual mortgage lenders.

What happens if a lender doesn't call your loan?

There are at least six title transfer situations when mortgage lenders cannot call their loans: 1. When there is no due-on-sale clause.

When did lenders enforce due on sale?

In many situations, lenders are not legally entitled to do so. In 1982 Congress passed the Garn-St. Germain Depository Institutions Regulation Act. This bad law allowed lenders to enforce mortgage due-on-sale clauses to demand payment in full when title to a property changed ownership.

What happens if there is no due on sale clause?

Surprisingly, many older mortgages and some mortgages held by private parties do not contain due-on-sale clauses. Obviously, if there is no due-on-sale clause, the lender cannot demand mortgage payment in full when title ownership changes. Always get a copy of the mortgage or deed ...

Why do you put a second mortgage on a house?

The reason is that placing a second loan against the property makes the first loan safer, not less secure. If the borrower doesn't pay the first mortgage, the second mortgage lender will usually step in to keep the payments current to avoid being wiped out by foreclosure.

Why do people hold title to their homes in a living trust?

Millions of homeowners hold title to their residences in a living trust. The primary reason is probate avoidance. When the mortgage borrower makes such a title transfer, the lender cannot enforce the due-on-sale clause.

What happens when a co-owner is divorced?

When a co-owner is divorced, if the title to the residence is transferred to either an ex-spouse or offspring of the divorced owner who will live in the home, the Garn-St. Germain Law bars the lender from enforcing the due-on-sale clause. 6. When title is transferred into an inter vivos living trust.

Can a mortgage lender enforce a due on sale clause?

However, the Garn-St. Germain Law specifies title transfer situations when mortgage lenders cannot enforce due-on-sale clauses. If a lender tries to enforce a due-on-sale clause, check with a local real estate attorney to see if you're being misled.