In a Countrywide Home Loans lawsuit, the plaintiff was not only able to recoup her losses, but was also able to win back what she actually owed. It was found that Countrywide did not have proper disclosure of material facts on their loan application forms. That form actually left out information that the lender had a legal obligation to provide. This meant that Countrywide did not have to disclose the fact that they were raising their rates suddenly and in some cases over the rate of inflation. This could result in hikes up to 125% or more.

Countrywide Home Loans Lawsuit

When the plaintiff and her attorney reviewed this loan contract, there were many things they were impressed with. The first thing they noticed was that Countrywide did not tell them that they were raising their interest rates suddenly. The form also did not mention that there were fees that were due at the end of the term of the loan which could be expensive if they were not paid. There was nothing on the loan contract form that stated anything about rate adjustments.

In order to receive approval for a Countrywide loan, you need to have perfect credit.

This means having a low debt to income ratio. Unfortunately, the plaintiff and her attorney were unable to find this in anyone. They only found out through the lawsuit that Countrywide pressures its home buyers to lie about their credit scores. This is illegal and puts borrowers at risk of paying thousands of dollars in lawsuits as a result.

To avoid this situation, it is imperative that you carefully review your loan agreement and make sure that you understand all the terms and conditions.

The fine print of the agreement is where you will find the terms and conditions of your settlement. There are certain things you should look for. For example, if there is an option to pay late payment costs, this is a red flag. If there is an option to reduce your interest rate, this is another.

The lawsuit says that Countrywide did not have any plans to deal with the consequences of their actions.

Instead, they simply created policies to protect themselves. These policies give Bank of America, “the power to determine who pays” their overdraft fees. This means that borrowers can be sued after being turned down for a loan from Countrywide. If you are sued, Bank of America can simply refuse to pay you.

It’s unfortunate that these lawsuits are taking place. But as long as the laws on debt collection and misrepresentation remain on the books, this type of thing will always happen. Remember, you are being charged interest even though you don’t own the property. The bank is the one who owns it. It is up to them whether or not you will be able to repay what you owe. If you think this is a problem, do what you can to defend yourself.

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