Law Offices of Robert P. Cocco, P.C.

Mortgage Abuse & Foreclosure Defense

Protecting Homeowners from Unfair Mortgage Practices

Mortgage lenders and loan servicers are required to follow strict federal and state laws when handling residential mortgage loans. Unfortunately, many homeowners experience servicing errors, improper fees, payment misapplications, wrongful foreclosure actions, and other abusive practices that can place their homes and financial stability at risk.

At Law Offices of Robert P. Cocco, P.C., we represent homeowners facing unfair mortgage servicing and foreclosure-related issues. We help consumers enforce their rights, challenge unlawful practices, and pursue compensation against lenders and servicers that fail to comply with the law.

Common Mortgage Servicing Problems

Mortgage servicing errors can create serious financial hardship and may improperly push homeowners toward default or foreclosure. In many cases, borrowers repeatedly attempt to resolve issues only to face delays, misinformation, or ignored requests from the mortgage company.

Common mortgage-related issues include:

Wrongful foreclosure actions
Misapplied mortgage payments
Improper late fees or charges
Escrow account errors
Failure to properly credit payments
Loan modification mishandling
Dual tracking during loss mitigation reviews
Unexplained increases in monthly payments
Inaccurate payoff statements
Failure to respond to borrower disputes or requests
Force-placed insurance issues
Harassing collection activity

These servicing failures can damage credit, increase financial stress, and threaten a homeowner’s ability to keep their property.

Federal Laws Protecting Homeowners

Several federal consumer protection laws provide important safeguards for homeowners dealing with mortgage lenders and servicers.

Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act (RESPA) requires mortgage servicers to properly respond to borrower inquiries, correct account errors, and provide accurate information regarding mortgage servicing.

RESPA violations may include:

Ignoring written disputes or requests for information
Failing to investigate servicing errors
Charging improper fees
Mishandling escrow accounts
Proceeding with foreclosure while a loss mitigation application is pending

Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) requires lenders to provide accurate and transparent disclosures regarding loan terms, interest rates, fees, and repayment obligations.

TILA violations can involve:

Inaccurate loan disclosures
Hidden fees or charges
Improper interest calculations
Failure to provide required notices
Unlawful lending practices

When lenders or servicers violate these laws, consumers may be entitled to damages, attorney’s fees, and other legal remedies.

Wrongful Foreclosure Defense

Foreclosure is one of the most serious actions a lender can take against a homeowner. In some cases, foreclosure proceedings are initiated improperly due to servicing mistakes, incomplete records, or failure to comply with required legal procedures.

We assist homeowners facing foreclosure-related issues involving:

Improper foreclosure filings
Failure to follow required notice procedures
Servicing errors leading to default
Loan modification violations
Predatory lending practices
Disputed mortgage balances
Unlawful fees and charges

Our firm works to protect homeowners’ rights and challenge unlawful foreclosure conduct whenever possible.

Holding Mortgage Companies Accountable

Mortgage companies and loan servicers are large financial institutions with significant resources, but consumers still have powerful rights under federal and state law. We help clients:

Review mortgage servicing records
Identify legal violations
Submit formal disputes and requests
Challenge improper fees and charges
Defend against unlawful foreclosure actions
Pursue litigation and monetary compensation when appropriate

We understand how stressful mortgage disputes can become and work to help clients navigate these complex situations.

Speak With an Experienced Consumer Protection Attorney

If you are dealing with mortgage servicing problems, foreclosure threats, or unfair lending practices, you may have important legal rights. Early action can often make a significant difference in protecting your home and financial interests.

Contact Law Offices of Robert P. Cocco, P.C. today to discuss your situation and learn how we may be able to help.

FAQ about Mortgage Abuse & Wrongful Foreclosure

My mortgage servicer sends me statements saying I owe more monthly payments than I think I owe and charges me fees I don’t understand, how can I tell the servicer they are wrong and ask for information about my loan?

Federal law permits you to send a letter to your servicer at a specific address noted in your mortgage statement so that you can give notice of error and request information. You should send this letter U.S. certified mail. Our office will help you prepare it free of charge.

If my bank or servicer files a foreclosure lawsuit against me, should I file bankruptcy?

Not as your first course of action. These are the steps you should take first:

If the bank or servicer is causing a loan default or inflating the amount you owe, send the letter described above.
If the county you live in has a “conciliation program” where the bank and borrower informally confer on a scheduled basis at the courthouse to resolve the default, participate in this program. You do not need legal counsel to do so.
If the conciliation process is not successful, consult an experienced foreclosure defense attorney if you have a defense to the foreclosure action. If not, consult a bankruptcy attorney.

What protection do I have if I default on my federally insured FHA or VA loan?

If it is, federal law requires you receive offer of three (3) types of help called “loss mitigation”:

Forbearance – pay your regular payment plus an extra amount to pay back the arrears you owe.
Loan modification – change the terms of your loan so that you can affordably pay back the arrears you owe on a monthly basis.
Partial Claim – if you are able to currently pay your monthly payment despite past arrears, the bank makes a claim on the HUD insurance fund for the amount of your arrears which you then have to repay when you sell or refinance your home or at the time the loan matures.

Is it illegal for my mortgage company to sell my loan so many times?

No. A standard mortgage document entitles the loan’s owner to sell some or all of its rights regarding your loan including the right to service it. But you should be alert for problems when a servicing transfer occurs. A common problem is that notice to the borrower of the transfer is not timely or does not occur. This sometimes causes payments made to the former servicer not to be forwarded to the current servicer and creates a default despite the borrower having made all payments timely.

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Mortgage Abuse & Foreclosure Defense

Protecting Homeowners from Unfair Mortgage Practices

Common Mortgage Servicing Problems

Federal Laws Protecting Homeowners

Real Estate Settlement Procedures Act (RESPA)

Truth in Lending Act (TILA)

Wrongful Foreclosure Defense

Holding Mortgage Companies Accountable

Speak With an Experienced Consumer Protection Attorney

Practice Areas

Background Checks for Employment & Housing

Mortgage Abuse / Foreclosure Defense

Credit Report Disputes / Identity Theft

Debt Collection Defense / Harassment

Auto Dealer Fraud

Debt Relief Companies