Send Demand Letters To Mortgage Lender for Negligence in Small Claims Court

Disclaimer: DoNotPay.com is not a law firm and is not licensed to practice law. This guide is meant to provide generic information on how to protect your rights and petition the government. This guide does not reflect the services provided by DoNotPay.com. Please do your own research.

Purchasing a home is one of the most significant investments a person will make in their life. That is why the consequences can be disastrous when errors occur during the purchasing process that results in these deals falling through and you missing out on an opportunity to buy your dream home.

However, if these situations are due to your , you may be able to pursue a claim against them and go after the financial recovery you are entitled to in this situation. Better yet, you will not have to hire an expensive attorney to do so.

Before taking action, consider resolving your complaint with your mortgage lender amicably. DoNotPay is an app that uses AI-powered technology to help you resolve consumer demands on your behalf, efficiently and effortlessly.

Reasons to File a Lawsuit Against a Mortgage Lender

Although it may not seem like a common claim, countless people pursue action against their mortgage lender for negligence, such as breaching the terms of a loan agreement or other wrongful acts. In fact, some of the more common lawsuits that tend to arise against a mortgage lender are due to:

Mortgage fraud
Predatory lending, and
Mortgage discrimination

Let’s take a closer look at these three common reasons to file suit.

Send Demand Letters To Your Mortgage Lender for Mortgage Fraud	Mortgage fraud often occurs when incorrect information is provided on a loan application. Even though many times, it is the applicant who can be charged with this type of fraud, mortgage lenders can also get in trouble, such as when they forge a mortgage contract.
Send Demand Letters To Your Mortgage Lender for Predatory Lending	Mortgage lenders have been known to target buyers, especially elderly borrowers or first-time borrowers, and try to get them to accept incredibly high-interest rates or unreasonable loan terms. As a result, if you can prove that your lender took part in this predatory lending, you may be able to file a lawsuit against them.
Send Demand Letters To Your Mortgage Lender for Discrimination	Mortgage lenders are prohibited from discriminating against borrowers based on their gender, race, religion, national origin, or other federally protected characteristics. Consequently, if you believe your mortgage lender has discriminated against you, you may have a valid claim.

File a Lawsuit Against Your Mortgage Lender for Negligence by Yourself

If you have a dispute with your mortgage lender, you will first need to review your original loan documents to understand your rights against the mortgage lenders. This is because these documents will contain relevant information regarding your ability to pursue action, such as your obligations under the contract, as well as the lender's duties and responsibilities. Once you gather all of this paperwork, you can then contact the mortgage lender and see if they can resolve the dispute you have with them. If that does not work, you can then:

Proceed with action. However, most contracts will require that you exhaust all of your available administrative remedies before pursuing action against your mortgage lenders. As a result, you must keep solid documentation of all the communications you had with the lender.
File a claim against them. In most instances, a lawsuit against the mortgage lender will be based on a breach of contract, where you seek compensation for the losses you suffered or other specific performance under the contract.
Head to trial. If you and the mortgage lender cannot settle this dispute, you may need to head to trial to get your issues resolved.

As you can see, taking on this claim yourself is not easy and will require many detailed steps. Worse yet, if you miss any of these steps, you can lose your case before it even gets started.

Dangers/Issues With Filing a Lawsuit by Yourself

Filing a lawsuit in small claims court yourself can be a challenging undertaking. In truth, there are many dangers and mistakes that are associated with filing a lawsuit by yourself. For instance:

Many people fail to abide by the strict regulations required to bring a claim against their mortgage lender, preventing them from continuing with their case.
Many people are not able to prepare solid arguments to prove your case.
Many people do not know how to gather relevant evidence and prepare sound arguments to show their damages and how the mortgage lender is at fault.

Let the AI Consumer Champion Help with Your Customer Service Issues

DoNotPay's AI Consumer Champion has made it easier than ever to resolve customer service issues. Whether you want to make a complaint, demand a refund, or negotiate a bill, we've got you covered. Here's how our Customer Service Issues product works:

Log in to DoNotPay and select "Other Customer Service Issues".
Tell us your side of the story. Simply select the option that best fits your request, answer a few questions, and you're all set.
Sit back and relax. DoNotPay's AI will make your demands for you. You can easily track progress and get updates, stress-free and hassle-free!