How Does the Truth in Lending Act Protect You?
Foreclosure Defense Attorneys in Las Vegas, Nevada, and South Florida
If you are facing mortgage foreclosure, we will thoroughly review your loan, the mortgage terms and the lender's conduct in offering you that loan. Some of the most important protections are based on a federal law called the Truth in Lending Act.
Please contact us for a mortgage review — even if you believe you received a good loan. Many people are surprised to learn the exact terms of the loan, and many have benefited from foreclosure protections we can readily explain to them.
The Purpose of the Truth in Lending Act
The Truth in Lending Act (TILA) requires lenders to disclose to you the true cost of the money you borrow. As an example, you may have a promissory note that says, "$500,000 at 6 percent interest." However, $10,000 of that $500,000 may actually be paid to your mortgage broker — not as part of the loan to you, but a cost required for you to get the loan. Under the TILA, this charge and the impact on your actual interest rate must be disclosed.
The TILA specifies that lenders must show you what is a finance charge and what is the amount financed, giving you an accurate picture of the true cost of your money over the life of your loan.
Although the Truth in Lending Act itself may be challenging for non-real estate professionals and nonlawyers to understand, the disclosures it requires are clear. A lender's claim that violations of this Act are oversights is generally not credible.
You May Have Strong Recourse Under the TILA
Violations of the TILA may enable you to recover:
- Actual damages - most commonly, the amount of excess interest you have paid
- Statutory damages - specified additional compensation for a TILA violation
- Punitive damages - which can be double the amount of all interest you paid, or even enable you to rescind the entire transaction
Our attorneys and staff work for you, and we want the best outcome in your foreclosure defense case. This can involve talking through your overall financial situation and the decisions you must make about staying in your home. Contact us today for the legal help you need.
