{"id":369303,"date":"2016-04-04T10:47:20","date_gmt":"2016-04-04T15:47:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/mortgages-equity-loans\/borrowers-rights.html"},"modified":"2024-05-23T14:55:14","modified_gmt":"2024-05-23T19:55:14","slug":"borrowers-rights","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/mortgages-equity-loans\/borrowers-rights.html","title":{"rendered":"Borrowers&#8217; Rights"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Borrowers&#039; Rights<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 23, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Welcome to the Borrowers&#8217; Rights section of FindLaw&#8217;s Real Estate Law Center. When you enter into a real property loan agreement, you have certain rights protecting you, including the right to:<\/p>\r\n<ul>\r\n<li>Shop for the best mortgage loan and lowest monthly payments<\/li>\r\n<li>Ask for a good faith estimate of loan charges, prepayment penalties, and origination fees<\/li>\r\n<li>Know how much the mortgage broker is getting in fees<\/li>\r\n<li>Review all loan documents, waivers, amendments, and fully understand the terms of the loan<\/li>\r\n<\/ul>\r\n<p>Borrowers and aspiring homeowners should always read the fine print. Educating yourself about your rights is vital to avoid mortgage scammers. This way, you can get the best loan for your home-buying needs. This section contains articles explaining:<\/p>\r\n<ol>\r\n<li>Your right to fair housing and lending<\/li>\r\n<li>Rights against mortgage discrimination and predatory lending<\/li>\r\n<li>More information about loan servicing<\/li>\r\n<\/ol>\r\n<h2><b>Predatory Lending at a Glance<\/b><\/h2>\r\n<p>Lenders should operate in good faith when meeting with potential borrowers. But that&#8217;s not always the case during a home purchase. The unscrupulous acts of some lenders can result in people losing their homes. Sometimes, they even do this with the help of appraisers and home loan mortgage brokers.<\/p>\r\n<p>Since predatory lenders don&#8217;t always break the law, borrowers need to understand how predatory lenders operate and how to avoid them. Common actions considered predatory include the following:<\/p>\r\n<ul>\r\n<li>Using false appraisals to sell properties for more than they&#8217;re worth<\/li>\r\n<li>Encouraging borrowers to give false income information<\/li>\r\n<li>Knowingly lending more money than the borrower can reasonably afford for homeownership<\/li>\r\n<li>Convincing borrowers to refinance their homes repeatedly<\/li>\r\n<li>Pressuring borrowers to take out balloon loans and other high-risk loan applications<\/li>\r\n<\/ul>\r\n<p>If you can&#8217;t make timely repayment, your home could end up in&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/foreclosure.html\">foreclosure<\/a>. When you miss your mortgage payments, the bank will notify you of default. They could start&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/foreclosure\/foreclosure-process.html\">foreclosure proceedings<\/a>&nbsp;after a period of time. That means that when a borrower defaults, the foreclosure process allows a lender to:<\/p>\r\n<ul>\r\n<li>Bring about a&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/foreclosure\/foreclosure-by-power-of-sale.html\">non-judicial<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/foreclosure\/foreclosure-by-judicial-sale.html\">judicial foreclosure<\/a><\/li>\r\n<li>Do a&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/foreclosure\/state-specific-information-on-foreclosure.html\">foreclosure sale<\/a><\/li>\r\n<\/ul>\r\n<h2><b>Common Predatory Lending Tactics<\/b><\/h2>\r\n<p>Buying a home is risky and typically has financial repercussions lasting for years. Predatory lenders play into these fears and anxieties. They may try to sneak in unfavorable contract terms or pressure you to do something against your interests. The key to success is to:<\/p>\r\n<ul>\r\n<li>Avoid rushing into a transaction<\/li>\r\n<li>Do your research<\/li>\r\n<li>Ask plenty of questions<\/li>\r\n<li>Always know exactly what you&#8217;re signing<\/li>\r\n<\/ul>\r\n<p>Predatory lenders may pressure you by telling you they are your only hope for getting a loan. They might warn that your time is running out. While timing can be important, particularly when shopping for a decent interest rate, you should always shop around. Also, you should never agree to sign your name on documents with untrue information or blank sections.<\/p>\r\n<p>If a lender makes promises too good to be true, watch out. For example, they might suggest that insurance from the Federal Housing Administration unequivocally protects you against loan fraud or home defects. That&#8217;s false and a big red flag that the mortgage lender isn&#8217;t working in your best interests.<\/p>\r\n<h2><b>Your Right to Fair Lending<\/b><\/h2>\r\n<p>Some important federal laws that affect many types of loans in all jurisdictions include:<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/dictionary.findlaw.com\/definition\/real-estate-settlement-procedures-act-respa-.html\" target=\"_blank\" rel=\"noopener\">The Real Estate Settlement Procedures Act (RESPA)<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/truth-in-lending-disclosure-statements.html\">The Truth in Lending Act<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/civilrights\/discrimination\/fair-housing-federal-laws.html\">Fair Housing Act<\/a><\/li>\r\n<\/ul>\r\n<p>Lenders can&#8217;t discriminate against borrowers by federal law on the basis of:<\/p>\r\n<ul>\r\n<li>Race, color, nationality<\/li>\r\n<li>Religion, gender, sexual orientation<\/li>\r\n<li>Marital status, age, receipt of public assistance<\/li>\r\n<li>Familial status and disability<\/li>\r\n<\/ul>\r\n<p>For instance, suppose a lender offers less favorable rates to one race over another. Here, the lender may be violating state law and federal law. But it&#8217;s difficult to determine whether a lender has discriminated against a borrower without comparing applicants in a relatively broad sample size.<\/p>\r\n<p>Also, remember that lenders sometimes have different lending standards. So, what may look like discrimination at first may just be a legitimate business method discrepancy among different lenders. If you believe someone has violated your rights as a borrower (or prospective borrower), consider contacting one or more of the following:<\/p>\r\n<ul>\r\n<li>State human rights agencies<\/li>\r\n<li>Private housing groups<\/li>\r\n<li><a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">Real estate attorneys<\/a><\/li>\r\n<li>Government enforcement agencies, like the&nbsp;<a href=\"https:\/\/www.consumerfinance.gov\/\" target=\"_blank\" rel=\"noopener\">Consumer Financial Protection Bureau<\/a>&nbsp;(CFBP) or the&nbsp;<a href=\"https:\/\/www.hud.gov\/\" target=\"_blank\" rel=\"noopener\">Department of Housing<\/a>&nbsp;and Urban Development&nbsp;(HUD)<\/li>\r\n<\/ul>\r\n<p>To learn more about your rights as a borrower, click on one of the links below.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n             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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n\n\n    <\/div>\n    \n    <div class=\"fl-section-sidebar\">\n        <div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div 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