When you buy a home, you don’t want to think about your mortgage lender doing anything shady. Sometimes, though, they don’t hold up their end of the bargain. This can have drastic consequences for you. If you are having trouble with your mortgage company, ask yourself the following questions to determine if it merits going to court.
Do They Owe a Fiduciary Responsibility?
A fiduciary relationship is one that requires a lot of trust and loyalty. Most lender relationships, however, do not fall under this category. If your mortgage company presents itself as financial advising experts, however, you may have a case if that financial advice proves faulty or problematic.
Did They Foreclose on Your Home Without Just Cause?
If you default on your mortgage, there can be severe consequences. Because the house itself serves as collateral, the bank can foreclose on your home. They have to have a legally sound reason for doing so. Even if a pass loan defaults, the lender often has to prove that terms of the loan were commercially reasonable. Loan terms that don’t fit this standard may give you a case in your suit against the lender.
Are They Abiding by the Terms of the Mortgage Contract?
The whole point of drawing up a legal contract is to outline the responsibilities of each party. The signing of the official papers, however, are often preceded by promises made during conversations, and the contract doesn’t always reflect all these promises. The best course of action, of course, is to catch this discrepancy before you sign. The lending company may be liable for the oral agreement its representatives made, however, if you can show that you were mislead or rushed into signing.
Hopefully, your mortgage company operates in good faith throughout the life of your loan. If not, however, it’s helpful to know what your rights are.