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Lender Liability

HomeForeclosure Defense

Unfair Lending Practices – Fraud and Lender Negligence

Based on the way things are unfolding, the root cause of the Foreclosure mess can be directly linked to unfair trade practices by mortgage lenders.  Unfair lending has become more of a focus as mortgage investors use these claims in their multi-billion dollar put-back lawsuits against the banks, including those against Bank of America by BlackRock, PIMCO, AIG, and others. We believe since these large institutional investors are alleging that unfair and predatory lending occurred, homeowner’s should be asserting these claims in defending their foreclosure cases. Larry Tolchinsky has extensive experience in real estate matters for more than 20 years and is familiar with predatory lending issues. Call him today at 954-458-8655 for a free initial consultation.

3 Ways Banks Engaged in Unfair Lending

The basis for the unfair and predatory lending claims we are asserting against these lenders is that the underlying loan transaction was defective to the extent that the lenders:

1.  Abandoned their own underwriting policies when approving a loan;

2.  Inflated borrowers’ income and/or assets on loan applications; and

3.  Fostered or used fraudulent appraisals and/or inappropriate valuation methods when determining the value of the real estate to facilitate unfair practices, including property flipping.

In simple terms, mortgage lenders breached their fiduciary duty to homeowners as the homeowners relied on the lenders, through their underwriting process, to determine if borrowers have sufficient income and credit to repay the loan.  In many instances, mortgage lenders veered from their own underwriting standards when it approved a loan. Because the mortgage lender failed to adhere to their own guidelines, the lender knew or should have known the loans couldn’t be repaid. Additionally, lenders fraudulently induced homeowner’s to borrow money by leading them to believe they could afford the loan payments.  For these reasons, it is important to hire an experienced real estate attorney who understands what to look for when reviewing a borrower’s loan file, including the underwriter’s notes which should explain why the bank veered from its underwriting standards.

One of the many things that set Larry apart from other Real Estate Attorneys is his knowledge of real estate having owned numerous properties for himself as well as having been a mortgage broker prior to practicing law. That experience allows him to understand and approach real property issues from a different view point, not just from a lawyer’s perspective.

Beware of Statute of Limitation Issues

As in most lawsuits, there are statute of limitation issues, meaning there is a time limit on how long you to have to bring a lawsuit or counter-claim against the mortgage lender. You should speak to an experienced attorney today because you may lose your right to pursue a claim.

Get A Free Case Evaluation By An Experienced Florida Foreclosure Defense Lawyer – Call 954-458-8655

If you believe your lender violated the predatory lending laws of Florida in giving you a loan, or if you suffered damage due to mortgage fraud we can help.  Contact Larry today to talk with an experienced real estate attorney about actions you can take to protect your home from foreclosure and to hold your lender accountable for underhanded practices.  You can contact him by phone at 954-458-8655 or by e-mail.  He offers a free initial consultation.

Please feel free to fill out the “How Can We Help You?” form above for a free consultation or to ask any questions.