(PRWEB) December 12, 2012
"Historically low mortgage interest rates are encouraging many buyers who were on the sidelines," Moe Veissi, NAR president, said in a press release. "Sales this year are notably higher than the levels seen in 2008 through 2011, so we're clearly in a recovery phase with rising sales, declining inventory and rising prices." Homes may be selling at the lower end of the market, but that doesn't mean the recovery is happening fast. Many homeowners are still underwater -- roughly 30 percent of mortgaged homeowners, according to Zillow data -- and there are plenty of markets still over saturated with inventory. Though we're on our way to a housing market rebound, consumers are still nervous about job security and their futures. Mortgage rates that are hovering near record lows are a sign that the housing market is still on shaky ground.
Lance Denha, Esq., of the Law Offices of Lance Denha recently noted that “With the housing market still in flux and the 2007 Mortgage Relief Act set to expire at the end of this year, the options for millions of homeowners currently in foreclosure are few. Remaining in your home, rather than severely damaging your credit through foreclosure or by increasing your income tax burden by concluding a short sale has its advantages. As a result, foreclosure defense is becoming a more viable alternative.”
For those who have been inquiring about Foreclosure defense, one of the effective tools recently used by Borrowers in an effort to gain a better understanding of the loans they previously signed and executed, has been to prepare and submit a Qualified Written Request (“QWR”). A QWR is a contract right found in every mortgage, which provides that the borrower has the right under the Real Estate Settlement Procedures Act (“RESPA”) and the related implementing regulation, to request information from the servicer.
In a typical scenario, a bank will receive a letter from a mortgage borrower, or his/her attorney or other agent acting on behalf of that borrower. The letter will generally demand that the lender provide the inquirer with a wide-ranging amount of information concerning the borrower’s loan and the transaction in general. The communication may assert that there is a defect or mistake in the borrower’s account, and then demand that immediate action be taken to correct that mistake.
The relevance of the RESPA provisions set forth above is that, unlike other inquiries from consumers, the duties that arise from inquiries that qualify as a QWR have potent legal consequences. RESPA damages have increased from $1,000 to $2,000 for violations involving a pattern and practice of non-compliance. Furthermore, now under Dodd-Frank Wall Street Reform (“Dodd-Frank”), servicers are required to respond faster to a QWR by acknowledging same within 5 days, rather than 20, and responding within 30 days instead of 60 days.
Even further, in the Helping Families Save Their Homes Act, Congress amended a portion of the Truth In Lending Act (“TILA”) to include a new provision, Section 131(g), that requires the assignee of a mortgage loan to notify a consumer borrower that his loan has been transferred. In fact, the new owner or assignee of a mortgage loan must notify the borrower in writing within 30 days after his mortgage loan is sold or otherwise transferred. This is extremely helpful for borrowers because failure of the lender to notify a borrower of a transfer of their loan will result in penalties borrowers may recover from lender for a TILA violation in connection with a loan in the amount of $4,000.
Borrowers and consumers deserve the best possible care and attention from their lending institutions. Unfortunately, for the most part, lenders are not providing this assistance without legal intervention. The Law Office of Lance Denha P.A. is committed to ensure that every possible avenue is pursed so that the homeowner’s legal rights are preserved. Actively monitoring the ever changing landscape of foreclosure laws, recent foreclosures across the nation as well as state imposed rules and procedures associated with foreclosure, is vital to ensure and protect these rights. The Law Office of Lance Denha P.A. is a multistate law firm and helps legally defend wrongful foreclosures against homeowners and utilize any and all legal tactics available to help accomplish preserving homeowner’s rights. For further information or assistance, please call at 954-840-0770.