Real Estate Settlement Procedures Act covers home buyers who purchase a property in the Real Estate Market. These home buyers are being targeted by financial companies who want to seize every penny of their loan. It is time to call a RESPA violation lawyer.
What is the purpose of RESPA?
The RESPA became effective in 1975. Congress has since amended the act to protect home buyers as well as those involved in Real Estate transactions involving residential homes.
Everybody is familiar with the pile of contracts and other legal documents involved in buying a house and getting a mortgage. It is the best thing a person can do to ensure they have read every document thoroughly before signing any.
Mishaps in loan processes are caused by misreading the fine print and strategic words. This is what dishonest financial companies do. They use every trick to obtain homebuyers. It is easy to add unnecessary expenses to the list because there are so many additional costs.
RESPA’s primary purpose is to make sure that all parties signing the documents understand the terms and conditions of their purchase. Any lender or financial institution can not raise costs, Escrow accounts excluded. If lenders make honest errors, there are deadlines they must meet to correct them.
The RESPA Violations Explained
RESPA regulates federal mortgage loans as well as all loans related to them. If there are any violations, mortgage brokers, lenders and title companies as well as service of home loans are all subject to the RESPA Act. Violations are when an action or inaction is taken that is contrary to the consumer protection regulations.
Many homebuyers don’t know that there is a violation during a residential real estate transaction. It is best to speak with an experienced real estate attorney. They can detect a financial service violation and stop it from happening.
Many violations contain documents that inflate, duplicate, or conceal hidden fees. These are difficult for homebuyers to understand or catch. Homebuyers have the right to ask for corrections before the deadline and get more information about what they are signing. The financial services have the obligation to explain and understand any information that the homebuyer doesn’t understand. The attorney can help the company to move in the right direction if they fail to do so.
Exemplary of RESPA Violations
When homebuyers are familiar with the RESPA, they will be able to understand how financial companies can violate it and attempt to take more than the law allows. Here are some examples of violations:
- Increase the cost of closing fees
- Charges for services that are not allowed by law.
- Any additional fees not known to the homebuyer
- Kickbacks are when a company offers or receives a monetary pay or valuable items in exchange for referrals.
If any of these violations occur, financial companies need to be aware that they are violating the law. However, receiving kickbacks can result in sentencing of penalties and fines as well as jail time.
It is also illegal to not disclose the following to homebuyers:
- Statements on Escrow for the first and annual years
- All fees and charges must be included in the closing statement.
- At the time of your mortgage loan application, a Good Faith Estimate will be provided to determine the Closing Cost.
- Every request from the homebuyer must be made to the financial company within a certain time frame. This includes fixing any mistakes or providing all information. NOTE: Homebuyers must submit all requests in writing to ensure documentation and timeframes.
Additional Information on Deadlines under RESPA
Homebuyers have the right to ask for information about the loan and to request an investigation into errors. The financial company must respond within 30 business days. Servicers should respond with the following:
- The financial companies must return a letter within five days of receiving the request from the homebuyer informing him that it was received.
- They must reply with a letter explaining why they need more time and how they are working on it if they can’t send the information back within the timeframe of 30 days.
If foreclosure becomes a problem because of the delay in the company’s reply, keep all letters and contact an attorney immediately. You should not wait until day 31 before you contact an attorney. They will need to fight back to stop the foreclosure process.
Sometimes, financial companies may continue to threaten foreclosure. However, you still have the right to sue them if they don’t respond. It is important to document everything in writing, including dates, times, statements, and any other statements.
What can a RESPA violation lawyer do?
They can provide advice to the homebuyer about the best way to proceed and act as an advocate between the homebuyer’s financial company and them. It is as annoying as being harassed by financial companies for not paying a payment.
An attorney can help them get to talk. Most companies will ignore you until the words “lawyer” or “attorney” are mentioned. Companies move when these words are mentioned. It is better to have an attorney representing you.
An attorney can recover up to $2,000 for each violation of the RESPA if it comes to litigation. They can also obtain the attorney’s fees to allow the homebuyer to keep the amount they have been awarded for each violation.
A RESPA violation lawyer can help the homeowner report the violation to the Consumer Financial Protection Bureau. They respond within 15 days to your complaint, investigate the matter, and enforce RESPA. Patterns from multiple complaints are also reviewed by the CFPB. They push financial companies to be more responsive to clients with more complaints.
Conclusion
Financial companies should not be charged more. The RESPA violations attorney will answer any questions regarding Real Estate. To avoid future problems, it is a good idea to first bring all paperwork to the attorney before signing the application.
What is RESPA violation in Plantation, Florida? was originally published on Attorney At Law Magazine.