There can be bias in any step of homeownership, and it’s always a cause for concern. Despite protections for borrowers against bias, it happens often enough you should be aware of how bias could impact you. Specifically in lending and foreclosure, there is an opportunity for lender discretion, which can become biased in a number of ways.
Any practice of bias is illegal. There are laws intended to protect homeowners from bias. It’s important that you understand your rights and how to protect them.
If you’re facing foreclosure, it’s recommended that you contact a foreclosure attorney. An attorney can help you understand the legal situation and fight for your rights and interests. If you suspect there has been bias involved in your case, you shouldn’t hesitate to contact an attorney.
Joshua Denbeaux is a New Jersey foreclosure attorney committed to protecting consumer rights. Contact us today to learn more about the New Jersey foreclosure process and how we may be able to help you.
What Is Bias In Foreclosure?
Bias in foreclosure can show up in a variety of ways. You should be aware of fraudulent foreclosure tactics, how they can be used to take advantage of uninformed homeowners, and how to avoid them.
Bias doesn’t always happen in the ways other types of bias may during foreclosure, and some of them can be very surprising.
One surprising example of bias in foreclosure is discrimination in how lenders pursue foreclosure. Lenders may be more likely to pursue foreclosure on homes in nicer neighborhoods. A lender may target homes in nicer neighborhoods because they hope they’ll sell for a home after foreclosure and need fewer repairs.
Focusing on homes in certain neighborhoods or ignoring other homes that are in default or abandoned could be biased by your lender.
Common Ways Lenders Use Bias in Foreclosure
You should be aware of common foreclosure fraud issues by servicers and lenders. These tactics wrongfully foreclose on unsuspecting homeowners.
Dual Tracking is when a lender begins the process of filing for foreclosure while the homeowner is negotiating a loan modification. When a homeowner is negotiating with their lender, they can’t pursue foreclosure. If they do, it is considered dual tracking and is a fraudulent foreclosure.
When a homeowner applies for a loan modification and is denied, they have 30 days to appeal the denial. In that 30-day period of foreclosure, your lender can’t pursue foreclosure. Lenders may backdate a loan modification denial to give you a shorter period of time to appeal. Backdating a denial is illegal and a fraudulent act by homeowners.
Robo-signing documents is another way that lenders can take advantage of unsuspecting homeowners. To foreclose, lenders must have all the documents relevant to the mortgage, including the deed and the name. If a lender loses a document, they cannot foreclose on the home. Lenders may try to convince homeowners to sign lost note affidavits. Lost note affidavits by lenders are illegal and considered fraud. Lenders may try to get you to sign one of these if they suspect you may not know your rights.
Protection for Homeowners
Homeowners have rights in foreclosure. It’s important that you understand your rights and how you can protect them.
A foreclosure attorney can help you protect your rights and fight foreclosure on your home. If you think you’re heading towards foreclosure and are concerned about bias, contact an attorney as soon as possible.
Contact a Foreclosure Attorney Today
Facing foreclosure can be stressful. It’s important to understand your rights and how to protect them.
Working with a foreclosure attorney can help you protect yourself from foreclosure and any bias from your lender. Understanding your rights and legal foreclosure actions is important to help you keep your home.
Contact Denbeaux Law today to learn more about bias in foreclosure and how we may be able to help you.
