About Mortgage Litigation
Mortgage litigation is a type of lawsuit between homeowners or home buyers and mortgage companies. These lawsuits emerge in situations in which a mortgage company commits a form of fraud against a homeowner.
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Litigation
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Litigation is a general term used to describe disputes or lawsuits that are settled in a court setting. If home buyers and mortgage lenders cannot arrive at an agreement on a specific matter, the mortgage litigation process may become necessary.
Areas of Fraud
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There are six different areas of fraud that mortgage litigation can center on. These are prepayment penalties, document fees, settlement charges, title insurance, private mortgage insurance fraud and improprieties with escrow accounts.
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Legal Costs
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Both parties involved in the mortgage litigation will accrue legal fees. As a result, settling outside of court can be preferable rather than taking the issue to the courtroom. There are other reasons why a mortgage lender may try to avoid mortgage litigation, such as bad press.
Process
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In a mortgage litigation situation, both parties explain to the court their side of the situation. The borrower can explain why they believe the mortgage lender is committing fraud. The lender will also have a chance to argue their side in court. The judge will ultimately make a decision.
Getting Help
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Homeowners who feel like they have been victimized by a mortgage company should contact legal representation. In many mortgage litigation situations there are time limits that must be adhered to, so quick action is imperative.
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References
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