Banks Use Fine Print in Miami Loan Modifications to Limit Your Right to Sue

Pro Publica recently reported a disturbing trend: banks, lenders and loan modification servicers hiding in small print of contracts that borrowers can’t sue.

This new trend puts the average homeowner in a precarious position. Do they risk losing their house if their loan isn’t modified or risk not being able to sue down the road if the company messes up paperwork or otherwise wrongs them? Before you sign a loan modification agreement in Miami, consult with a Miami foreclosure lawyer.
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Regulators have banned the practice, but some have continued using the language in their contracts, the article states. Mortgage servicers — the companies that handle mortgage payments and evaluate whether to modify a loan or file foreclosure papers — have faced investigations in all 50 states. Criminal investigation. Many have alleged fraud, forgery and other wrongdoing. In many, many cases the rights of the homeowners have not even entered the picture.

The report suggests that such waiver clauses declined in 2009 after the Obama administration launched its mortgage modification program, which forbids the practice for government-sponsored loan modifications. But many modifications have been done without using the program, leaving companies able to add it into contracts.

This is another example of lenders and financial institutions trying to pull one over on the homeowner. After many problems with mortgage servicers’ inaccurate and untruthful practices, banks are now forcing borrowers to concede their rights. In any contract, there can be areas that weren’t written properly that can infringe on your rights. To say you can’t use the court system to remedy the injustices is a travesty.

You may need to consider real estate litigation in Miami for a variety of reasons, including errors in your loan paperwork, an illegal foreclosure or issues with mortgage servicers.

It can be frustrating to embark on the loan modification process because banks are often unwilling to help you stay in your house. To fight foreclosure, use the problems the banks are having with robo-signing, lost paperwork and fake documents to launch a counter-attack to expose the lender’s weaknesses in a foreclosure proceeding.

Get an attorney. Negotiate from Strength.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991