Every individual out there wants to own a home at some point. This is the ultimate dream, but unfortunately for many individuals this will not be possible without the assistance of a mortgage. Sure, mortgages are great, because they basically give you the money that you need upfront to buy the home and you just pay the lender back with a fixed interest rate. So, when it comes right down to it, a mortgage is nothing more than a big loan. However, you really have to be extremely careful when it comes to dealing with lenders, because they can issue you bad terms on your mortgage or give you bad advice that will put you in financial trouble.
This is known as a missold mortgage and you need to understand everything you possibly can about this term and what it means.
How Do You Know If You Are A Victim Of A Missold Mortgage?
There are a variety of situations that could mean you have been sold a missold mortgage. For instance, if you were advised by a lender or financial professional to borrow money without proving your financial records, this would be the perfect example of a missold mortgage. If you were advised to take out a mortgage that you couldn’t pay back until after you retired, this would be another example of mortgage misselling. If you have been advised to switch lenders right in the middle of the mortgage, but weren’t informed about the penalties and fees that would follow, this would be another example. In addition to these examples, if you were given the advice to take out an interest-only mortgage, but weren’t given the proper information, this could also be seen as another example of a missold mortgage.
Many consumers rely on their lender or broker to provide them with reliable recommendations. While, all lenders and brokers promote themselves as experienced and trustworthy, there are a few who have a long history of providing consumers poor advice without their knowledge. Some of these brokers are just greedy, while others are just pure negligent.
Before the 2007 Housing Bubble, some brokers and lenders have utilized enticement tactics. These tactics included everything from easy credit approval and low interest rates. This was enough to entice thousands of consumers to buy a home. Unfortunately, many of these consumers were left with nothing more or less than a missold mortgage.
The Consequences of Missold Mortgages
The unfortunate truth is that mis-sold mortgages are going to come back to haunt the consumer. If you’ve been mis-sold a mortgage, you’re going to experience a lot of problems. For instance, there is a good chance that you’re going to be hit with totally inappropriate interest rates. You may experience negative equity and substantial high fees. This combination of problems can eventually make it difficult for you to pay your mortgage and it could lead to repossession of your property.
What You Should Do
If you’ve been duped, you need to make sure that you take action immediately. After all, you may very well be entitled to some type of compensation. The mis-selling of mortgage is far more common than you could ever imagine. Get in touch with an attorney in your area. Many will be willing to investigate the claim free of charge and without an obligation. Some law firms will even take your case with a no win fee. This means that it won’t cause you anything, if your claim is not successful. Do not hesitate to fight back.
How will the compensation be calculated? Well, the decided compensation will attempt to put you back on the same path you were on before you were mis-sold the product. The compensation will be based on your current financial situation and where you should have been had you not been mis-sold a mortgage.