The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Homeowners Hands Often Tied By Binding Mandatory Arbitration Clauses

Posted By admin || 1-Oct-2008

Many homeowners don't realize it, but often their loan agreements include binding mandatory arbitration clauses. These clauses require that any dispute a homeowner may have with a lender be settled through arbitration and prevents the homeowner from taking any claims to court.

What This Means For You

If you're a homeowner who has been the victim of predatory lending practices often found in the subprime lending industry, binding mandatory arbitration clauses prevent you from having your case heard by a jury of your peers, in a public forum. Arbitration is held in secret with little or no documentation of the proceedings.

Often, binding mandatory arbitration clauses include language that limits a homeowner's ability to claim penalties, attorney fees and may limit the actual dollar amount awarded homeowners. Some binding mandatory arbitration clauses also prevent homeowners from joining a class action suit against lenders. If you are considering taking out a loan on a home make sure that your attorney checks the documents for binding mandatory arbitration clauses and their stipulations.


Categories: Loans / Mortgages
Blog Home