When you’re going through the process of buying a home, it’s easy to think that mortgage lenders have all the power. But did you know that the Real Estate Settlement Procedures Act of 1974 (RESPA) outlines several rights and protections for homebuyers? The law is intended to protect buyers from predatory lending practices, but some lenders still try to violate your rights because they believe they can do so without facing consequences. If you believe your RESPA rights have been violated, a Fort Lauderdale RESPA violation lawyer may be able to advocate for you against predatory lenders.
RESPA is meant to protect your rights as a homebuyer — but the law works only if unethical lenders are held accountable. An experienced real estate attorney may be able to help you determine whether your rights have been violated and help you decide what to do next.
What Are Your Rights Under RESPA?
Some RESPA rights violations are due to a lender error. Others are deliberate rights violations. While RESPA is a complex law, the most common rights violations are in relation to Section 6 and Sections 8 through 10.
Section 6
This section protects you against unfair practices in loan servicing. If you have an issue with the way your loan is serviced — like the lender failing to issue you statements or charging you late fees when your payments were made on time — Section 6 outlines the process to take:
- You contact the servicer in writing.
- The servicer has 30 days from the day they receive the notice to issue a response.
- The servicer has 60 days to resolve the complaint.
In this context, “resolving” the complaint means the lender either fixes the problem or gives you reasons as to why it is unwilling or unable to
Section 8
Section 8 of RESPA prohibits residential mortgage lenders from giving referral fees, incentives, or kickbacks of any kind in exchange for business referrals. For example, if a mortgage broker tells local real estate agents they will receive $10,000 for every client they refer, that would be a clear violation of Section 8. These violations come with serious penalties — lenders who violate Section 8 can be fined up to $10,000 and imprisoned for up to a year. They also can be ordered to pay “treble damages,” or three times what the lender charged the homebuyer.
Section 9
This section prohibits anyone selling a home from requiring buyers to use one particular title insurance company. Just as with Section 8 violations, sellers who violate Section 9 may also be ordered to pay treble damages, or three times the amount paid for title insurance.
Section 10
This section limits how much your lender can require you to keep in an escrow account. Often, lenders will put a portion of each mortgage payment into an escrow account to ensure you have enough to pay for taxes, insurance, and other costs. However, they must follow detailed regulations to ensure they require you to fund the account for only as much as is necessary.
Attorney Carlos M. Amor has held countless unscrupulous mortgage lenders accountable for their actions. If your rights have been violated, call 954-453-7200 to schedule your free phone, video, or in-person consultation today.
How Can a Fort Lauderdale RESPA Violation Attorney Help?
Dealing With a Predatory Lender? You Need an Experienced Advocate.
If your RESPA rights have been violated, the right real estate attorney may be able to help resolve the issue. These are some of the ways they may be able to assist:
Reaching Out to the Lender
Suppose that a lender refuses to respond to communications from you within the given timeframe. Sometimes, it just takes a letter from your attorney to get them to respond. If a lender knows you’ll pursue legal action if they don’t address your concerns, they’re much more likely to do so.
Filing a Lawsuit
If a lender is still unwilling to right a wrong, your RESPA lawyer may be able to file a lawsuit on your behalf.
Helping You Recover Damages
In many cases, homebuyers can recoup their attorney’s fees and other costs from lenders who have violated RESPA. Your lawyer may be able to guide you through this process.
FAQ
Many homebuyers — especially those buying a home for the first time — aren’t familiar with their RESPA rights or what steps to take if those rights have been violated. Understandably, they come to The Law Office of Carlos M. Amor, P.A. with several questions.
How do I know if my RESPA rights have been violated?
It’s always wise to be familiar with the full text of the law before seeking a mortgage. An experienced attorney may discuss your situation with you to determine whether your rights have been violated.
How can a Fort Lauderdale RESPA violation lawyer help?
An attorney can start by contacting the lender on your behalf. If that does not resolve the issue, your lawyer may be able to pursue legal action against the lender.
How much does it cost to work with you?
That depends on your individual case. At your free consultation, attorney Carlos M. Amor can discuss fee arrangements with you in more detail.
Will I have to file a lawsuit against my lender?
That depends. Often, lenders are willing to negotiate a situation without taking the matter to court, but in some circumstances, a lawsuit might be necessary.
If you have questions about your situation or want to schedule a free consultation, get in touch today!
Why Choose Us?
The Right Attorney Makes All the Difference
Retaining an experienced real estate attorney shows predatory lenders that you’re serious about defending your rights. Attorney Carlos M. Amor has more than 15 years of experience helping Florida homebuyers stand up to lenders. He may be able to help you protect your home, your finances, and your future.
Need help asserting your rights under RESPA? Call The Law Office of Carlos M. Amor, P.A. at 954-453-7200 to set up a free consultation by phone, by video call, or in person.
ATTORNEY CARLOS M. AMOR
Carlos M. Amor is a skilled and experienced attorney and real estate broker. His legal practice in South Florida focuses on real estate litigation, real estate investments, tax deed and foreclosure auction purchases, traditional real estate transactions, short sales, foreclosure defense, and civil litigation. Carlos thinks “outside the box” and takes a practical approach to finding solutions that benefit his clients. [ ATTORNEY BIO ]
