Becoming a homeowner in Texas may have been one of the most exciting times in your life. Like most other homeowners in your area and throughout the nation, the mortgage agreement you signed may have also become your largest liability. If you chose a 30-year loan, which is typical in most situations, worries about mortgage payments may occasionally interrupt your dreams for building a healthy, happy lifestyle with your family.
Texas is definitely no stranger to financial crisis, including national economic woes as well as individual financial problems many residents experience from time to time. If you unexpectedly lose your job, or someone in your family gets sick and needs extensive medical treatment, your equally balanced financial scales may suddenly weigh down with debt on one side. Perhaps things have gone so far down that you’re facing a foreclosure threat. Understanding your mortgage rights may be key to finding a positive solution.
Things you have a right to know and do as a mortgagor
Whether you live in a small house that barely fits your growing family or have a room or two to spare that come in handy when guests come to visit, when you signed your mortgage agreement, you had (and still have) certain mortgagor rights. The following list includes basic facts about your rights and may also help you determine if someone has possibly violated those rights:
• Securing a mortgage loan is not a take-it-or-leave-it type of deal. The option to shop around and compare prices from different brokerages is a guarantee.
• You also have the right to know about any fees you’d incur if you cancel your agreement at some point.
• Full disclosure is the name of the game regarding mortgagor rights. Your broker must inform you of the total cost of your loan upon request, and this amount must factor in points, fees and interest rate.
• You may request a Good Faith Estimate of your settlement charges and loan fees.
• You also have the right to know how much you and your lender will pay the broker.
In light of a mortgagor rights violation, the federal Truth in Lending Act protects you by allowing you to seek damages. In certain circumstances, especially if foreclosure is a worry, you may be able to request a loan rescission. That basically means you obtain a void on your loan. The amount of time that has passed since you signed your mortgage agreement may impact your ability to seek rescission.
One of the easiest ways to clarify your mortgagor rights and to determine a best course of action, if you believe someone has violated your mortgage rights or you are facing foreclosure, is to speak with others who are well-versed in lending and debt relief laws.