Is a lender’s unauthorized change to mortgage documents actionable?
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Is a lender’s unauthorized change to mortgage documents actionable?
Since my home is in foreclosure I had a forensic audit done on the copies of the loan documents I received at the closing 8 years ago. It was found that I had signed and dated the “I Wish to Cancel” line at that time. However, copies of the same documents obtained from the lender show that my signature and date had been lined out and the change initialed (with my initials). The lender did this without my knowledge. Is this a violation of federal law/regulations and if so, which one(s)? Is it actionable and can it be pursued while defending the foreclosure action on my home?
Asked on July 31, 2011 Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The unauthorized altering of signed an/or initialed written documents by an institutional lender or a private lender is improper and could result in the voiding of the loan depending on what was altered.
Additionally, if the institutional lender's loan is insured by the federal government, the altering of loan documents by the institutional lender after the borrower has signed them could be a violation of "TILA", otherwise known as the "Truth in Lending Laws".
Given the foreclosure that you are in regarding your home and the possibility that your signature/initials may not be on certain documents allegedly signed by you, consulting with a real estate attorney about this is probably a wise idea.
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The unauthorized altering of signed an/or initialed written documents by an institutional lender or a private lender is improper and could result in the voiding of the loan depending on what was altered.
Additionally, if the institutional lender's loan is insured by the federal government, the altering of loan documents by the institutional lender after the borrower has signed them could be a violation of "TILA", otherwise known as the "Truth in Lending Laws".
Given the foreclosure that you are in regarding your home and the possibility that your signature/initials may not be on certain documents allegedly signed by you, consulting with a real estate attorney about this is probably a wise idea.
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