Why You Should File a Lawsuit Against Your Mortgage Servicer Now – Not Later
People often struggle with their mortgage servicer. It is hard to get information from them, you wait for hours on the phone when you have a question, and sometimes they even break the law. So how do mortgage servicers break the law, and why should you sue yours now (if yours broke the law)?
They break the law in lots of ways. They violate the Massachusetts Consumer Protection Act by using unfair and deceptive practices when they deal with you. They violate the Real Estate Settlement Procedures Act by mishandling your escrow account or adding force-placed homeowner’s insurance. They sometimes even try to foreclose when your account is being reviewed for a loan modification or other foreclosure alternatives.
If your mortgage servicer breaks any of these laws, you should seek legal counsel and potentially file a lawsuit as soon as possible. Each of these laws has its own statute of limitations, so if you file too late – even if the servicer did something wrong – your case will be dismissed.
This happened to a homeowner in a recent case from the First Circuit Court of Appeals, the federal appeals court for Massachusetts. He filed a suit against his mortgage servicer for violating the Predatory Home Loan Practices Act. His mortgage allegedly required no documentation, had a high interest rate, and had a high loan-to-value ratio. But because there was a five-year statute of limitations, and he filed his lawsuit after that, the case was dismissed. He lost. The case is Rife v. OneWest Bank
If you think your rights were violated – whether because of a loan modification gone wrong, misapplied payments, or an illegal foreclosure – contact a lawyer now. Culik Law has helped numerous homeowners to save their houses and to stop mortgage servicers’ wrongful practices. Find out if we can help you.