California Debt Relief Attorney Trying to Help Clients Recover From Fraudulent Lending
While loan fraud certainly occurs in many instances, it can be very difficult to prove and prosecute in California. For example, many fraudulent lending cases involve complaints that lenders have engaged in oral fraud. In other words, while the lender said one thing about a loan, the actual written contract may contain difficult to understand terms and conditions that impose restrictions on the borrower quite different from what was orally promised. If the borrower's signature is on the contract, the legal presumption is that the borrower agreed with its terms.
It can be hard for the borrower to prove that he or she relied upon and suffered damages based upon a lender's oral promises when the terms of the agreement itself are stated in writing and signed off on by the borrower. In such a case — and absent clear fraud — a court will almost certainly rule that the agreement is enforceable.
Additionally, damages can also be hard to prove. While contract terms may indeed be harsh, in most cases, the borrower took possession of the subject of the loan, whether it was a house, car or other asset.
The bottom line: While fraud cases can be prosecuted and won, typically they are not. A heavy presumption of legality often attaches to a loan agreement that is difficult for a borrower to overcome.
Despite the hurdles commonly faced by a borrower seeking to prove and prosecute loan fraud, no one should feel discouraged from pointing out fraudulent lending where it exists and bringing a legal claim to recover damages that resulted from it. At the Law Office of Jeff D. Hoffman in Oakland, we carefully evaluate our clients' cases to determine whether any loan fraud may have taken place. If you feel you've been misled by a mortgage broker or other lending agent, don't hesitate to contact us to consult a qualified attorney.
Dishonest Brokers
Predatory lending and loan fraud have long been serious problems in California and nationwide, and during the real estate boom, many mortgage brokers started making money by misleading clients about the terms of the loans they received. Sometimes, real estate agents were complicit in helping people buy homes that the agent knew they could not afford and worked with mortgage brokers to get a loan approved.
If you were told that your payments would be one amount and they turned out to be something different, you may have a valid legal claim for mortgage fraud against the broker who misled you.
This was an especially common practice in the subprime mortgage market that has collapsed in recent years, causing so many problems for the national and global economy. Loan fraud played a major role in this collapse.
Examining the Details of Your Loan Agreement
Brokers often try to evade responsibility for dishonesty by producing the papers that the borrower signed. Of course, many people do not read all the small print when they sign something, especially if a broker has reassured them about the basic terms of the loan agreement.
We will look at all the details to determine whether there is enough evidence for you to bring a claim. If so, we work with experienced trial lawyers to bring these claims forward and pursue the money damages our clients deserve.
In the meantime, we can help you seek bankruptcy solutions to your immediate financial worries. Contact us today to discuss the full range of actions you can take to recover from loan fraud.
