What Is Loan Misselling/Missold Mortgage?

by Billy White on December 14, 2011

Since the real estate market has caused the economy to slump, it has come to the attention of some that many lenders have been acting unethically and are guilty of mortgage mis selling/mis sold mortgages. This is considered to be the case where they have approved loans when the client did not have the sufficient repayment ability to justify the amount of the loan. This has been happening for years and now there is recourse for the victims of this practice.

So what exactly is a mis sold mortgage? It is considered to be when a potential home buyer has been provided with a loan that was an inappropriate amount and in excess of their real ability to repay the loan. There are many different lenders who have been found guilty of operating unethically and not seeking or providing an objective assessment of the applicant’s real ability to service the loan.

If you think it is possible that you have been given one of these loans, then you now have some legal recourse to make a claim. The results of these claims can be large payouts for the victims. There are also law firms who specialize in these claims and will operate on a no win, no fee agreement.

The first thing to do is to work out if you have a case and you have been the victim of a mis sold mortgage. There are various aspects of your application process that are examined in order to determine if you have a case. The key to the whole thing is whether or not the broker followed the regulations and rules that they should have when presenting you with the options for a loan and during the process.

If you are making your case, then it will be pinned on the kind of advice that you were given about the mortgage, which loan products were presented to you and what explanation of the interest rates was given.

Since working out if you do indeed have a claim and processing that claim are somewhat complex, it is best to seek out the help of agencies that deal specifically in these cases. You can find a legal claims management company that will look over your personal situation and present it for you. These are usually offered with a no win, no fee guarantee so if your case is dismissed, then you do not have to fork out a single cent.

The firm will investigate your mortgage and try to turn up relevant information that supports your claim. The process will take some time due to the amount of investigation involved, so you should count on waiting between two and three months for a result.

Due to the irresponsible and unethical business practices of some lenders, home owners have been landed with unworkable loans that have left many people financially bereft. In an attempt to help some of the people who are in this situation reclaim their life, there is legal assistance available. Mortgage mis selling/mis sold mortgages should not affect your financial position, so if you think you have been sold one of these, you should get in contact with an assessment firm today.

Wondering what is mortgage mis selling exactly? Get the low down now in our complete guide to everything you need to know about Mis Sold Mortgages.

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