Can I Sue My Mortgage Company for Stress in Small Claims Court?
When mortgage companies fail to live up to their responsibilities, or worse, try to take advantage of you, the stress can be overwhelming. According to the National Institute of Mental Health, stress causes a host of medical problems, including heart disease, diabetes, and high blood pressure. Medical treatment is expensive and can result in a reduced quality of life.
If you are experiencing stress due to the actions of your mortgage company, you may be able to sue them for stress in small claims court.
In this article, we discuss:
- Reasons to file a lawsuit against your mortgage company
- How to file a lawsuit against your mortgage company
- Issues that may arise if you file a lawsuit by yourself
- How to use DoNotPay to file your lawsuit against your mortgage company
Reasons to File a Lawsuit Against Your Mortgage Company
The most common reasons individuals choose to sue their mortgage lender for stress include:
|Insufficient Disclosure||Your lender must adhere to the Truth in Lending Act (TILA). TILA requires mortgage lenders to supply certain information to the borrower, including payment terms, interest rates, and fees. TILA also mandates a right of rescission, which allows you three days to back out of the agreement without financial loss.|
|Inappropriate Debt Collection Activities||If you make a late payment on your mortgage, you may be subject to penalties up to and including foreclosure. However, your lender is required to adhere to certain rules that allow you to set things right. The Fair Debt Collection Practices Act (FDCPA) creates specific rules for mortgage servicing that regulate time frames for payment posting, notifications, and responses to requests for information.|
|Wrongful Foreclosure||If you fail to pay your mortgage on time, your mortgage company may foreclose. Although they may be within their rights to foreclose, many mortgage companies conduct the foreclosure process incorrectly. Wrongful foreclosure has a number of causes, including:
|Sue Your Mortgage Company for Stress||Your mortgage company has a duty of care to handle your mortgage payments and requests for information in a timely manner. If your mortgage lender does not adhere to RESPA, TILA, FDCPA, and other regulations, you may have grounds to sue them.|
File a Lawsuit Against Your Mortgage Company by Yourself
If you plan to sue your mortgage company without a lawyer, it is critical to follow the correct legal conventions:
Send a demand letter
The first step in the small claims process is to send a legal demand letter to your mortgage company that states:
- How much money you are claiming.
- Why you are claiming the money.
- Your name, address, phone number, and other contact information.
- Where to send the payment.
- Amount of time they have to remit payment.
- Your intention to sue if payment is not received within the specified time frame.
Response times vary depending on the jurisdiction, but your mortgage company usually has between 7 and 14 days to respond.
File the lawsuit
If your mortgage company does not respond within the time indicated, you can file your lawsuit in small claims court. You will likely have to pay a filing fee. If you can't afford to pay a filing fee, you can ask the court to waive the fees.
Serve Notice to your mortgage company
When you file your lawsuit, you must notify your mortgage company that you filed the lawsuit against them.
To complete service:
- Hire someone to serve the notification.
- Serve the notification to your mortgage company's local agent for service of process.
- Include an official copy of the complaint.
- Once service is completed, file a Proof of Service form with the Court.
Anyone who is not a Plaintiff and is over 18 years old can serve the defendant. Most people pay to have a court clerk, process server, or the local sheriff's office serve the papers.
Attend the hearing
After you have served your mortgage company, the court will schedule a hearing. You will present your case, and your mortgage company will have the opportunity to mount a defense. You must present complete and accurate evidence to substantiate your claim.
Issues With Filing a Lawsuit by Yourself
Suing your mortgage company in small claims court for stress is difficult. Not only do you have to prove that you experienced undue stress, but you must also establish that your mortgage company was directly responsible. Without a legal background, it can be difficult to quantify damages and compile the right documents to support your case.
How to Sue Your Mortgage Company for Stress with DoNotPay
The experts at DoNotPay are here to help! We can help you organize your case, create legal forms, and obtain the necessary documentation to support your case. The process is simple:
- Log in to DoNotPay and select the Sue Now product
- Enter the dollar amount you are owed
- Select whether you want a demand letter or court filing forms
- Describe the reason for the lawsuit and submit any applicable details, including photo proof
That's it! DoNotPay will then generate a demand letter or court filing forms for you. We'll even mail a copy of your demand letter to the individual or business you are suing!
Simplify the Legal Process With DoNotPay
DoNotPay is the only solution you need to file lawsuits. It’s convenient, fast, and super easy. We believe that the legal system is unfairly skewed in favor of big corporations and the wealthy. That’s why we created the world’s first robot lawyer to help you with audacious undertakings such as:
- Suing wireless companies like AT&T and Verizon
- Suing major airlines like American and United
- Suing rideshares like Uber and Lyft
- Suing insurance companies like Progressive and Geico