Case Requires Bank to Show Compliance with FHA Requirements

For the most part, every mortgage and note are generally the same (at least in Florida, and if we’re talking about first mortgages on residential property). That is, they use the same basic language, with the same requirements imposed on the lender and the borrower. FHA Loans But FHA loans are a little different. FHA loans are those that are insured by the federal government; if you don’t pay your loan, the FHA will pay the lender for its losses. Because of that guarantee, the lender has to abide by the federal government’s rules in handling, servicing and foreclosing on the loan. A mortgage and note in an FHA loan will often specifically state these extra requirements, which the lender must comply with before foreclosing on the loan, if the lender wants FHA to insure the loan. The problem is that sometimes lenders comply with these requirements and sometimes they don’t. A new case, Chrzuszcz v.Wells Fargo Bank, N.A. out of Florida’s First…

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