California Predatory Mortgage Lending Lawyer

Predatory mortgage lending is a vicious cycle that can leave Californians in a position of impounding debts and being unjustly taken advantage of by unethical lenders driven solely by yielding a profit. Whether you are a borrower who has become overwhelmed by hidden fees and hiked-up interest rates or a homeowner going up against foreclosure, a California predatory mortgage lending lawyer can help you seek justice and fight back against unjust practices.

The experienced legal team at Rosenberger + Kawabata has the knowledge and experience required to assist you with navigating complicated financial contracts, defending your rights and interests, and ensuring liable parties are held accountable for their predatory actions. Our compassionate team employs a client-centered approach, working closely with you to understand your concerns and challenges, addressing them head on with solutions.

Predatory Mortgage Lending in California: What You Need to Know

In California and across the United States, predatory mortgage lending involves the use of fraud, deception or unfair practices by lenders to exploit borrowers. Unfortunately, predatory lending practices commonly go after individuals in vulnerable situations, whether they are low-income, elderly, disabled or lacking financial literacy. However, it’s important to note that these unfair lending practices can happen to anyone, particularly when they least expect it.

Common predatory mortgage lending practices seen by legal professionals at our firm include:

• Excessive fees: High payments or unnecessary costs hidden amongst indecipherable jargon in lending agreements.
• High interest rates: Loans that have unsustainable interest rates that are usually much higher than the established market rates.
• Balloon payments: Asking for enormous lump-sum payments towards the end of a borrowing term that the borrower cannot afford to pay for.
• Loan flipping: Asking borrowers to refinance their loans over and over again, ultimately hiking up the fees and drawing out the cycle of debt.
• Misrepresentation: Providing false or misleading information about the terms of a loan or failing to provide crucial details about the loan.
• Debt Trap: Designing loan terms with the deliberate intention of making repayment extremely difficult. This often involves a combination of high interest rates, excessive fees, and short repayment periods, trapping borrowers in a cycle of accumulating debt.

Under both California and federal law, predatory mortgage lending is strictly prohibited. Unfortunately, many lenders still find ways to evade the law, continuing with their predatory lending practices; practices which can cause serious devastation for victims.

Consequences of Predatory Mortgage Lending Practices in California

Predatory mortgage lending can lead to devastating outcomes for individuals in California who fall victim to these unethical and illegal practices. High interest rates and exorbitant fees can commonly lead to unmanageable amounts of debt, further plunging borrowers into a cycle of debt. Many of these California borrowers can lose significant assets that can uproot their entire lives, from cars to homes to retirement savings.

In addition to losing their assets, predatory practices can impact a victim’s ability to borrow in the future. Defaults or delays in payments can significantly damage a borrower’s credit score, hindering their ability to invest and grow their legacy. It’s also crucial to highlight the significant stress brought on by predatory lending practices. Increasing debt, loss of assets, and limited financial options can lead to feelings of stress, anxiety, and considerable emotional suffering.

Understanding Laws in California Against Predatory Mortgage Lending

California offers some of the strongest protections for borrowers in the nation. These policies and legal frameworks seek to avoid exploitative lending practices and give victims the resources they need to obtain legal remedies. A skilled attorney from Rosenberger + Kawabata can help you understand how California predatory lending laws may be relevant to you, as well as how these regulations could impact your case outcome.

The California Homeowner Bill of Rights

The California Homeowner Bill of Rights, otherwise referred to as HBOR, is a legal framework that was established to protect the rights of homeowners in the state facing foreclosure. It shields homeowners from being subject to predatory practices that are linked to foreclosure, and gives lenders certain responsibilities.

Under HBOR, lenders should give only one point of contact to borrowers, not impose a charge for loan modification requests, and pause any proceedings for foreclosure during active modification reviews. Borrowers must also be notified of their options to prevent foreclosure within a certain time period before the foreclosure proceedings begin.

The California Financial Code

Under California’s financial code, stringent restrictions are imposed upon lenders when it comes to setting fees and interest rates for certain types of loans. The loans that are subject to regulations under California’s financial code include college loans, National Housing Act loans, and higher-priced mortgage loans. An attorney from our firm can help you understand whether your loan type is subject to regulation under the Financial Code.

The Unruh Civil Rights Act

The Unruh Civil Rights Act is a piece of legislation that guards individuals against forms of discrimination from lenders based on characteristics like gender, religion, race, and other factors. An experienced lawyer from our firm can review the details of your case to determine whether you have been subject to discriminatory practices under the Unruh Civil Rights Act and help you pursue all legal options for remediation.

Truth in Lending Act

The Truth in Lending Act, or TILA, is federal legislation that gives lenders the mandate of reporting the terms of all of their loans in a clear and accurate manner. These regulations exist to make sure consumers are protected from terms that could take advantage of them. If lenders do not ensure compliance with these terms, they can face penalties such as fines and suspensions. Furthermore, in such situations, borrowers may have various options for financial relief.

Support Provided by a California Predatory Mortgage Lending Attorney

If you have even the slightest suspicion that you have been subject to predatory lending practices, it is crucial to work with a skilled predatory mortgage lending lawyer serving clients like you in California. They can help you understand what your immediate rights are and work to take adequate action to hold lenders accountable and seek remediation.

A compassionate attorney from our firm can support you with the following:

• Going over loan agreements: An attorney from our firm can go over your loan agreement terms to determine whether any predatory practices are involved. We can scour all documentation for tactics like clauses that have deceptive wording, unnecessarily high interest rates or other hidden costs.
• Looking into the practices of your lender: The exploitation you are facing may be part of a larger pattern of discriminatory practices carried out by your lender. One of our diligent attorneys can launch a detailed investigation into a lender’s practices, uncovering an individual or organization’s illegal or unethical behavior, ranging from violating disclosure agreements to targeting California’s most vulnerable people.
• Filing a claim: Depending on your case details, it may be optimal to resolve your case through a legal claim. We can guide you through filing a claim against your lender on the state or federal level, helping you go after remedies like financial compensation or cancellation of your loan agreement.
• Fighting against foreclosure: Facing foreclosure due to predatory mortgage lending practices can be stressful and devastating. A compassionate lawyer from our firm can work closely with you, collecting and presenting crucial evidence that exposes your lender’s illegal practices. Furthermore, we can help you negotiate alternatives to foreclosure, such as repayment plans or loan modifications.
• Negotiating settlements: Predatory mortgage lending cases can often be resolved outside of the courtroom, saving time and money. If ideal for your case, a lawyer from our firm can negotiate fiercely on your behalf to obtain financial compensation, renegotiate loan terms, or minimize debt amounts.

How to Know If You Are a Victim of Predatory Mortgage Lending Practices

Unfortunately, many Californians are victims of predatory lending without being aware of it. By understanding some crucial red flags, you can work to prevent yourself from falling victim to these practices. Seek legal remediation if you believe you are a victim. For example, if you are being asked to pay high fees or interest rates that were not clearly disclosed upfront, you could be experiencing predatory mortgage lending.

Further potential red flags include: loan agreements that appear to be too good to be true, penalties for early repayment, balloon payments, aggressive behavior that is pressuring you to sign documents that are vague in nature or skips over details, and refinancing offers that give no benefits and hike up your interest rates.

If you have even the slightest suspicion that you are being subject to predatory lending practices, it is of utmost importance to contact a skilled and experienced lawyer. They can help you collect evidence, determine your legal options, and hold the perpetrator accountable for their egregious actions. Furthermore, they can help you find a path forward that preserves your financial reputation and protects your hard-earned assets.

Fight Back Against Unfair Practices with a California Predatory Mortgage Lending Lawyer

If you are facing foreclosure or financial hardship due to predatory lending practices in California, you are likely feeling overwhelmed and unsure about which steps to take next. You should not have to navigate the situation alone; an experienced California predatory mortgage lending lawyer from Rosenberger + Kawabata is here to provide you with crucial legal guidance and support. Reach out to a compassionate member of our team today to get started.