In Ohio, all homeowners have legal rights that are clarified through the Homeowner’s Bill of Rights. These laws provide them with legal protections that stop lenders from starting a foreclosure unlawfully. They give them the right to take legal action based on the steps followed by their lender. The following are details about the bill of rights and how they help homeowners facing foreclosure in Fairfield, OH.
Reviewing the Homeowner’s Bill of Rights
Under this bill borrowers can file a lawsuit against their lender if their rights were violated; for instance, if they were denied a loan modification when they qualified. If the borrower has filed an application for a loan modification, the lender cannot fast-track the foreclosure to seize the property. They must wait until a decision is made.
Protection Against Predatory Lending Practices
Upon the discovery of any predatory lending practices, this bill of rights gives the borrower the legal right to take action and fight back. If these practices are discovered, the borrower can nullify the mortgage contract. They can force the lender to correct these terms and give them a fair and reasonable mortgage. This includes changes in the interest rates and payment structure to make it more affordable.
Verifying All Mortgage Documents
Another unethical practice discovered was the production and filing of unverified documents for the mortgage. These documents are often used to start the foreclosure process. However, as these are discovered, the borrower has the legal right to report them to the court. Under the rights bestowed upon borrowers by the Homeowner’s Bill of Rights and applicable laws, the lender will face civil penalties. The fines imposed could equate to at least $7,000.
Collecting Penalties After a Sale
If the borrower proves that the foreclosure was unlawful, they can collect penalties through a lawsuit against the lender. These penalties equate to any money lost through payments associated with the mortgage as well as the loss of their home.
In Ohio, all homeowners retain legal rights through the state-issued Homeowner’s Bill of Rights. These rights enable them to take legal action if a lender takes unethical action associated with a foreclosure. To learn more about these opportunities to avoid foreclosure in Fairfield, OH visit us today.
