Have you ever wondered if it would be possible to bring a fraud case against a Los Angeles hard money lender
? You are not alone. As more and more of these outfits spring up all over the country, many have started to wonder if they could bring a lawsuit if they feel that they have been defrauded by one of these types of lenders. The truth is, the industry is growing so fast that many of the lenders have been cutting some corners in order to try to make even more money even faster. This has led to certain situations in which some lenders are not taking all of the steps that they are supposed to in order to stay within the law. As such, you may well have a case to bring against them.
Fraud is a concept that is not necessarily easy to prove. You have to show that a lender not only flew in the face of the law, but in some cases you have to prove that they do so intentionally and with the idea in mind that they were going to steal from you. That is not an easy task to take on. Only the most seasoned and experienced of lawyers can really grasp the full concept of this and take your case from the beginning stages all the way to the finish line to help you win the settlement or judgement.
Luckily for us all, there is a law on the books that governs how lenders are supposed to act when they lend out money to their customers. This law is known as the Truth in Lending Act or TILA. This law makes it very clear that all terms and conditions of a loan must be spelled out in plain English for anyone who is considering borrowing money.
Violating Federal Law
It is probably easiest to win a fraud case against a hard money lender if you can show where they have been violating federal law in terms of the Truth in Lending Act. If you can show this, then a jury is more likely to side with you since the law pretty well spells out exactly how things have to go in order for a lender to be operating properly.
A good attorney can quickly bring all of this up with the lender that you are threatening to sue and see if they are willing to negotiate a settlement in your case. Sometimes they will agree to this just to get this off of their books and out of their minds. Your case could be over in a successful way just as quickly as that. That is why you need a talented attorney to shepherd you towards that kind of goal.
What You Could Win In A Judgement
There is some hope in the fact that a judgement could bring you literally double the amount that you have been charged in financing fees from the lender. In other words, you could get twice as much money back as what you lost to the fraudulent practices of the lender that you have brought into court. That is an incentive for you to bring them to court of course, but it is also a sign for them that they should not be conducting these kinds of practices in the first place. If they do not stop immediately, then the situation is only going to continue to get worse for them moving forward.
Speak with your attorney about your particular case and see what he or she has to say. You just might be surprised by what the answers are according to the attorney that you hire.