Sue Mortgage Lender for Negligence in Small Claims Court
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 mortgage lender’s negligence, you may be able to pursue a legal 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.
DoNotPay is an app that uses AI-powered technology to assist you while you pursue legal action against another individual or entity, or in our case, your mortgage lender, for their wrongful actions. Basically, this app will become your very own robot lawyer that is ready to walk you through this whole legal process and ensure everything is taken care of for you in minutes.
Reasons to File a Lawsuit Against a Mortgage Lender
Although it may not seem like a common claim, countless people pursue legal 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.
|Sue 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.|
|Sue 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.|
|Sue 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 legal 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 legal 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 legal action. However, most contracts will require that you exhaust all of your available administrative remedies before pursuing legal 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 legal 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
- 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 legal arguments to show their damages and how the mortgage lender is at fault.
How to Sue a Mortgage Lender for Negligence With DoNotPay
Thankfully, if you plan to bring legal action against your mortgage lender for negligence, you do not have to stress about taking on this legal battle alone. With DoNotPay on your side, you can get the legal assistance you need to take on this case and succeed. Best of all, the process is easy and straightforward:
- Log-in to DoNotPay and select the Sue Now product
- Enter the dollar amount that you are owed
- Describe why you need to file a lawsuit
- Once you enter all of this information, DoNotPay will prepare a demand letter for you to send to the mortgage lender
DoNotPay will also fill out the required court forms, ensuring that everything is appropriately prepared according to the court’s requirements. Once filed, DoNotPay will walk you through everything that will happen next and how you need to respond. It can even get you ready for trial by providing you with a script.
Dealing with a lawsuit against your mortgage lender can be a stressful ordeal that can become a massive headache for you and your family. Fortunately, with DoNotPay, you can have knowledgeable legal help walking you through each step of this process and helping you fight for the compensation and justice you deserve.
How Else Can DoNotPay Help?
DoNotPay is a useful tool in suing any company in small claims court without a lawyer. Check out the following companies that DoNotPay has helped sue: