Borrower's Rights: << Back
There are many rights that a borrower has before borrowing money for a home. These rights are summarized here. Remember, this would be the biggest money you will ever be borrowing and so, make sure you know your rights.
- You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
- You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.
- You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
- You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.
- You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.
- You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.
- You have the RIGHT to ask questions about charges and loan terms that you do not understand.
- You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.
- You have the RIGHT to know the reason if your loan was turned down.
- You have the RIGHT to ask for the HUD settlement costs booklet "Buying Your Home."
Further more, the federal Fair Debt Collection Practices Act forbids third-party debt collectors from doing any of the following:
- Threatening borrowers with violence or jail.
- Threatening borrowers with a lawsuit or garnishment of wages, unless that action will actually be taken.
- Harassing borrowers by calling several times a day at home, after 9 p.m. or before 8 a.m., or by calling the borrower at work.
- Using intimidating language or tarnishing borrowers' character.
- Deceiving borrowers about their identity or the amount owed.
- Sending misleading papers that look like legal documents.
While these prohibitions are widely known, some third-party debt collectors flout them. And they don't apply to the original lenders, who have great latitude. Borrowers who have been abused by a collector can sue. Anyone who suspects they're being abused should file a complaint with the Federal Trade Commission. "It may be difficult to identify who's really making the call," said AARP's Sally Hurme. "If you believe you're being hassled, make the report and let the FTC sort out the finer details."
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