RESPA Lawyers in Northbrook
What Is the Real Estate Settlement Procedures Act?
The Real Estate Settlement Procedures Act (RESPA) was put in place to protect borrowers who have taken out a mortgage to purchase a residential home. The intention of RESPA is to allow borrowers to make intelligent decisions about taking out a mortgage, rather than leaving them in the dark. This federal law lays out the exact information which must be provided to borrowers in regards to the terms of their mortgages.
How Does the RESPA Protect Me?
RESPA regulations apply to virtually any real estate transaction, including when you first purchase your home, if you refinance your mortgage, if you get a reverse mortgage, or if you take out a home improvement loan. Although it is always important to be careful and read over your documentation, you cannot completely prevent yourself from falling prey to overcharging. It is unacceptable and even illegal in some cases for agents and other companies to charge for particular services.
If you believe there have been violations of RESPA which have affected you negatively, reach out to a Northbrook consumer law attorney at the Bach Law Offices, Inc.. Contact us online or call now (847) 440-5998.
Requirements of the RESPA
In addition to disclosing certain information about the cost of a mortgage to a borrower, the RESPA is intended to prevent a borrower from being charged additional fees. The reason this act was put in place was to prevent referral fees stacking up against consumers without their knowledge, as different parties of real estate transactions made money off of their ignorance.
This was a regular practice several decades ago, involving parties referring business to one another. Unfortunately, although the RESPA was intended to protect consumers like yourself, these actions still occur. It is important to speak with a Northbrook consumer law attorney from our firm if you believe you have fallen victim to these practices.
The RESPA requires that the following parties follow very strict protocols:
- Real estate brokers
- Real estate agents
- Mortgage companies
- Home inspectors
- Warranty companies
- Title companies
- Credit agencies
- Loan document companies
The disclosures which must be provided to you include:
- Servicing disclosure statement
- Good faith estimate of settlement costs
- Affiliated business arrangements
- Escrow account statement
- HUD-1 settlement statement
Do you suspect that you are the victim of any type of violation of the Real Estate Settlement Procedures Act? Our experienced Northbrook consumer law attorneys are here to look over your case. Call us now at (847) 440-5998 for a free consultation.