How a Bank Lawsuit Can Impact Your Ability to Obtain a Loan Modification


Florida Attorneys General and others who have been involved in the Regions Bank lawsuit point to one main reason why this controversy has developed. According to them, they “never believe that another bank would knowingly and negligently” allow their clients to use electronic money to fund real estate transactions. Others claim that the reason that so many attorneys are “holding their breath” over this case is that the bank has been “very cooperative with the investigators.” Others claim that the bank “will have little choice but to admit liability and turn over the evidence necessary to win its lawsuit against Mr. Kaplan.” No matter what others believe, the fact remains that the lawsuit against Regions Bank should not have been allowed to proceed in the first place. If you were a client of Regions Bank or any other financial institution, and this lawsuit against your bank was allowed to go forward, you should take the following steps:

Immediately notify your lender that you expect a legal claim against you.

Your letter should also include all supporting documents such as credit card statements, bank statements, and pay stubs. Also, give your lender a copy of your credit report that shows all negative items deleted from your file. This letter is extremely important because it provides the evidence needed by investigators to find and document any possible abuses of property interests. Also, it is essential that you post-payment interest fees on your next monthly mortgage payment, which could be the only means of recovering any potentially lost funds from the Regions Bank lawsuit.

If you find that the lawsuit did not result in any monetary damages for you, consider ways in which you can get your account back such as making the required monthly mortgage payments on time, forgiving a portion of your loan early, or reducing the amount of interest charged on the remaining amount owed. If you do not have enough money in your bank account to cover the full amount due, you could be subject to a post-payment interest fee. For example, if you have defaulted on a loan for six months or more, your lender may charge you an interest fee equal to twenty percent of the outstanding balance. If you simply missed one or two payments, you will probably not be subject to any interest or fees. If you cannot afford to make the required payments, however, you should consult with a loan modification specialist immediately to determine other options available to you.

It is important to remember that even if you are not subject to a post-payment interest fee, you will still incur costs associated with the loan early payment process.

For example, your lender will charge you a fee for their investigation services and for processing your loan. Additionally, you may be assessed late fees if the investigating team sends you a demand for payment before the case has been completely settled. Also, you may incur late fees if you fail to settle the case before the due date. In addition, if you do not settle the case on or before the due date, you may be subject to a potential penalty.

Another way that your Regions Bank lawsuit might affect your customer’s interest in a loan, is by increasing the rate of interest. In most cases, you are charged a variable-rate, compounded interest on the amount of the loan. If you can successfully negotiate a new loan with your current lender, you can request that your new lender eliminate the existing pre-payment penalties and the balloon amount for interest. In most cases, if your customer files a complaint with the bank, likely, you will also be subject to a post-settlement assessment fee.

If you have been the victim of illegal loan charges or have otherwise been the victim of a bank lawsuit, you should be aware that there are several different legal protections available to you.

Most importantly, you should know that if you are unable to pay for your loan, you have the right to seek a Loan Modification from your lender. In most cases, your lender will work out a loan modification that is beneficial to both parties and will result in you being able to continue to make your monthly payments.

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