What is predatory lending?
Predatory lending occurs when a bank or other mortgage lender willfully engages in actions to cheat or defraud the borrower. The victims of predatory lending typically do not know what has happened until many months or even years after the event, and they might not ever find out. The end result of predatory lending is that the borrower spends years struggling to afford an outrageously expensive mortgage and often ends up losing the home to foreclosure or declaring bankruptcy. Beyond these stark financial consequences, predatory lending also often subjects the borrower to enormous stress and economic duress.
Examples of predatory lending range from simple failure to disclose loan terms to outright attempts to mislead the borrower into accepting an unfair or even abusive loan. The unwitting borrower is required to pay exorbitant interest rates or outrageous fees for late or missed payments. The lender represents the loan terms as being nonnegotiable. The loan terms are hidden deep within the paperwork and are represented using ambiguous or misleading language.
Take Action Against a Predatory Lender
If you suspect that you have been a victim of predatory lending, do not hesitate to contact us at The Law Offices of Justin McMurray, P.A. for help. The fact that the bank took an unfair advantage of you may be used as evidence in court to fight against foreclosure, and depending on the circumstances of the case it may not only be possible to defeat the foreclosure but also to deny the lender any legal rights in respect to the home. It is also possible to sue for predatory lending even if you have not yet been threatened with losing your home.
If you take action over a Truth in Lending Act violation within three years of the date when you received the loan, you may have a right of rescission which would allow you to recover your down payment and all the money you have paid in interest and mortgage points. There are many approaches to the situation but the key thing to know is that you have legal rights and that a Gainesville foreclosure defense lawyer from our firm can fight for you.