In Maryland, a loan modification is a process that gives consumers access to a lower interest rate or payment value. The strategy could prevent a foreclosure and place late charges and fees at the end of the mortgage loan. A loan modification law firm gives consumers advice about the process and related legal actions.
Reasons for Filing a Loan Modification Lawsuit
Unethical lenders make claims after a loan modification was achieved to trick or mislead consumers. When the lenders make the claims, an attorney guides the consumer in preparing a lawsuit. The following are reasons why consumers could file a loan modification lawsuit against their lender.
* Misplaced contracts: Lenders claim they lost the contract that solidified the loan modification in the first place. When accepting a modification offer, all consumers should request a copy of the documents.
Predatory terms in the original loan contract: Any predatory terms in the original contract give the consumer grounds to file a lawsuit. The terms are illegal under mortgage reform laws passed by the federal government.
* Denying an extension: Lenders who provide an extension for a short-term modification must honor their obligations. They cannot deny an extension that was approved for the loan modification especially when the payments weren’t late.
* Loan modification schemes: Scammers who offer fraudulent modification programs cause extensive issues for the consumer. They scam the consumers for money and don’t provide any help for avoiding foreclosure. Ultimately, the consumer loses their home because of the scam. A loan modification law firm helps consumers identify the scams and take legal action quickly.
Where Are the Complaints Filed?
A formal complaint is filed with the specific agency that oversees the defendant or field and/or industry in which the defendant operates. Among the agencies or officials in which the complaint is filed are the Federal Trade Commission, the National Association of Realtors, or the Attorney General.
In Maryland, loan modifications are strategies available to prevent foreclosure. The process lowers the interest rate based on the consumer’s qualifications or unethical terms that shouldn’t be in the mortgage contract. The modification is an alternative to filing bankruptcy. Consumers who need answers from a loan modification law firm can visit website for more info now.