Those suffering from the prospect of foreclosure in New Jersey and Pennsylvania, may have an opportunity pursuant to the Truth in Lending Act (TILA), to seek legal recourse against their mortgage lender.
As set forth in a recent class action filed in the U.S. District Court for the Central District of California, numerous mortgage companies engaged in unlawful lending practices with thousands of borrowers applying for adjustable rate mortgages (ARMs), by:
1) failing to disclose within the loan documents and disclosure statements the “actual interest rates” on the notes;
2) inducing borrowers with low teaser interest rates and then failing to disclose that such rate was fixed for a short period of time whereupon, the principal would significantly increase; and
3) providing discounted interest rates and then failing to disclose the actual interest rate (significantly higher) that the borrower would have to pay on the notes.
Such Class Action involves lenders such as Trust One Mortgage Company, Residential Funding Company, LLC, Homecomings Financial, LLC, and Aurora Loan Services. Pennsylvania and New Jersey have experienced a significant number of foreclosures in the past year. According to RealtyTrac, a database that tracks foreclosure statistics, New Jersey’s foreclosure rate has increased by 52% since 2005, with approximately 52,000 foreclosure filings over the past year.
If you or someone you know is suffering from a foreclosure as a result of a mortgage companies’ misleading and unlawful lending practices, you may be entitled to a legal claim pursuant to the Truth in Lending Act. Please contact our law-firm for a free consultation.