Looking Over Loan Docs, $37 discrepancy

[myhearts07]

Hey All, we are in foreclosure scheduled to go to court on May 20th. I went on a website and there was a video about the $35 Mistake. So I am listening to this and decide to go through our loan docs. Sure enough there is a discrepancy in the total of the settlement charges by $37 and other discrepancies as well. What do I need to do with this? Who do I contact regarding this, the lender, title company or the broker? What does this do for us if anything?

Thanks for your help

Hearts

[Dan Bailey]

myheart,
discrepanies can sometimes be utilized by an attorney (if one is retained) to gain some leverage in the bargaining table with the lender during the modification process.

[Moe Bedard]

Here is some info for you:

12 C.F.R. §§ 226.15(a)(3), 226.23(a)(3). Regulation Z defines, in no uncertain terms, what the term material disclosures is intended to include. “The term “material disclosures” means the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total payments, the payment schedule, and the disclosures and limitations referred to in sections 226.32(c) and (d).” 12 C.F.R. § 226.23(a)(3)(fn48).

In a typical loan transaction these terms can be found on a document called “Truth In Lending Disclosure Statement”. The numbers on this disclosure statement must be accurate to within very narrow tolerances. Depending on the type of loan, the Annual Percentage Rage (APR) must be within 1/8 of 1 percentage point of the actual APR. 12 C.F.R. § 226.22(a)(2). The total finance charge can not be understated by more than $100 in most cases, and not more than $35 if the creditor has initiated foreclosure proceedings. 12 C.F.R. §§ 226.23(g), 226.23(h). It is necessary to carefully examine the final closing statement and compare it to the Truth In Lending Disclosure Statement to identify possible discrepancies.

You can read more here: Loan Rescission - When Three Days Really Means Three Years