Can I really sue my mortgage company for violating RESPA?


“Can I really sue my mortgage company for violating RESPA?”

RESPA is a law that forces mortgage companies to treat you fairly

RESPA is a law that forces mortgage companies to treat you fairly

One of the questions that may come to mind is, “Can I really sue my mortgage company under RESPA?”  The answer is “Yes” — if your mortgage company has violated RESPA then you can sue and that may stop a foreclosure against you.

RESPA is a powerful law.

It’s very helpful when you’re facing foreclosure, and especially if the mortgage company has made any mistakes.

Usually they do make mistakes, or at least they make things confusing.

Maybe you’ve sent Notice Of Error and Request For Information letters which they haven’t responded to.

Maybe the mortgage company forecloses on you which violates the dual tracking prohibition when you are in the middle of loss mitigation.

There are many issues that you could be dealing with.

If the mortgage company violates RESPA, you can sue them.

Which is very powerful, because for every violation of RESPA, the mortgage company has to pay up to $2,000 in “statutory” damages even if you can’t show any actual harm.  This is to discourage your mortgage company from violating the law.

Under  a similar law, Truth In Lending, they will have to pay up to $4,000 per violation.

We have cases where there are 10, 20, 50, even 100 violations.

That starts to add up.

In addition to having to pay for violations, the mortgage company may also have to pay actual damages.

You can get mental anguish and money damages.

You can also get attorney’s fees.

Other resources that can help you.

You can go to ForeclosureDVD.com, where there are four  videos and a workbook available free of charge.

You can slo go to RESPAVideo.com, where we have an hour long video that covers the types of letters and documents you send to your mortgage company in detail and you can download form letters if you want to send your mortgage company letters to try and set things straight.

Both the video and downloads are free of charge, just enter your name, email and phone number.

Feel free to get in touch with us.

If you live in the state of Alabama and you have more questions that you need answered, feel free to contact us.

You can reach us by phone at 1-205-879-2447 and ask for Carolyn, or you can fill out a contact form and we will gladly get in touch with you.

I look forward to chatting with you soon!

Have a great day.

-John G. Watts


14 Comments

  1. Michelle Blodgett says:

    In need of help with RESPA violations as first time homebuyers. Do you provide help in NJ??

  2. Scotty says:

    There is a lender that forces the borrower to use their specified title, attorney, appraisor, and credit reporting agency as a condition to get a loan through them. I believe this is a RESPA violation???

    • John Watts says:

      Scotty,

      I don’t do much with this portion of RESPA. My memory is the lender should not make borrowers use all of these other vendors. I think the concern is the consumer may be overcharged if forced to only use one appraiser, etc.

      Sorry, I don’t know more about this — I focus on after the loan is made and someone is facing foreclosure.

      But what you have described certainly sounds wrong and I would investigate more before doing business with that lender.

      Best wishes

      John Watts

  3. Robert says:

    Bank of America has been dragging me along for over 2 years. I received a letter in July of 2016 stating my home would be sold at Auction on Aug 22 2016, this was a few month after speaking with a customer service rep about missing a few payment so I could pay a for some medical bills to allow my father to receive treatment for cancer. I submitted RMA’s only to be told 3 weeks later they needed the documentation again then I would receive denial letters stating I didn’t qualify as my income was too high and conversely it was too low. all along I had requested on several occasion my SCRA benefits only to be told I didn’t qualify. It wasn’t until after threatening to get an attorney that I was told by a CSR that my mortgage had been approve for SCRA during a telephone conversation on Nov 14, 2016 because I called to see if my home was going to be sold at auction the following day. She went on to explain someone would be calling to explain everything to me. on Nov 30,2016 I sent a request for information that has yet to be responded to. I have attempted to make payments on line and forced to call CS only to be told payments cannot be accepted due to the account being “Under Review” that doesn’t include the $2800.00 in payment made but not applied to my mortgage.

    Any Guidance would be greatly appreciated

    • John Watts says:

      Robert,

      So was your home foreclosed or did they cancel at the last minute?

      What state are you in?

      I would seriously consider doing some RESPA letters — request for information and notice of error letters. Calling and writing normal letters can feel like banging your head against a wall.

      But when Bank of America gets a RESPA letter it will need to respond properly or face a lawsuit.

      Do keep in mind if your home was foreclosed, then normally you can only do RESPA letters for 12 months after that. I’m assuming though you are still making payments etc to Bank of America now in 2018 and your home was not actually foreclosed.

      I understand how frustrating it can be to deal with Bank of America.

      I do recommend getting with a lawyer in your state that understands RESPA and foreclosure laws — if you are in Alabama feel free to call us at 205-879-2447. You can ask to speak to Randi first and then she and I will chat and go from there.

      Best wishes and getting this behind you!

      John Watts

  4. Antonio Magni says:

    Good afternoon, they put the entire amount of my mortgage on a letter. I guess that a lot of people saw that. Can I sue that company?

  5. Carolina says:

    I filed for a chapter 13 Bankruptcy back in 2013 it was completed in 2017.
    Since then I have been arguing with Transunion they show my Mortgage as
    a missed payment in 2017. I have never missed a payment furthermore they
    continue to show outdated information my current balance is also incorrect.
    Never the less according to the NYS law they can not proceed to report this
    account as it was included in the bankruptcy and the attempt to do so is in
    Direct Violation of the discharge, this is also stated in the Fair Credit
    Reporting Act as a Violation and I should have grounds for them Violating
    the discharge. I have spoken to the other 2 credit monitoring agencies and
    they show as closed included in the bankruptcy however here I am still
    fighting with nasty people from Transunion they are hurting my credit and I
    was also given a very high interest loan due to this as well they should be
    held responsible Transunion and my mortgage company Shellpoint both
    are in violation for in accurately reporting my account I have never been late
    after the discharge. From what I know

    When you file for bankruptcy, you are required to list all of your debts and this includes your mortgages. When you receive a discharge in bankruptcy it also discharges your personal liability for the mortgages on the home. It does not remove the mortgage lien that exists on your home. This means that if you fail to make the payments on the home, then the mortgage company can foreclose on the home but cannot pursue you for any deficiency judgment.
    Mortgage companies will not report your mortgage payments because they are concerned that it violates the automatic stay or discharge injunction. The concern is that reporting the payments on the credit report can be treated as an attempt to collect a discharged debt. This can subject the mortgage company to a discharge violation in bankruptcy court. Reporting negative information for any mortgage payments that are late can be treated as a discharge violation.

    • John Watts says:

      Carolina,

      Sorry you are dealing with this. If TransUnion is reporting a missed payment that you did not miss, dispute it with TransUnion and copy the letter (all by certified mail) to the mortgage company.

      If they don’t fix it, look at suing them.

      Same thing with balance.

      You are right that if discharged you do not owe the loan but if you don’t pay (what you don’t owe) they can foreclose. It is an odd “no man’s land” when you stay in the home but do not reaffirm the debt.

      Bottom line is get with a lawyer in your state to help you navigate this — should be easy if you have never missed a payment.

      Thanks and best wishes!

      John

  6. Diana Dennison says:

    Yes, I need to know if you can handle case in state of South Carolina. My case is showing that mortgage company is guilty of Respa, dual tracking and host of other legal issue.

    • John Watts says:

      Diana,

      I’m not licensed in South Carolina. If you have a lawyer there who wants me to help, I may be able to do that.

      Or you can call Penny Hays — she’s a very good lawyer I knew from Alabama who now lives in South Carolina.

      Best wishes!

      John Watts

  7. Hi John,
    I live in Arizona. I want to sue Amerisave mortgage company due to they extended my closing date then declined my loan for unable to verify employement. I work as a nurse and my husband work for the city court. There is no way that they could not verify employment. I called them multiple times and called their manager. Left voicemail, email but no answers. They wasted so much of my time and stressed me out. Please advice. Thank you for your time.

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