The loss mitigation person at the lender said "what do you mean? You're making $14,000, why can't you afford a higher payment?"

Linda discovered that the mortgage broker had slipped in false paperwork asserting that she and her husband made $14,000, in order to get the loan approved and collect presumably a big commission.

More homeowners are discovering such mortgage loan fraud every day. A lot of them are getting in touch with me.

But what is not as well known is that mortgage lenders have made many errors that put them in violation of the federal Truth In Lending laws. This gives you the homeowner a way to rescind your loan. The lender must make you whole and then must pay your attorney's fees if you win.

When lawyers evaluate these Truth In Lending violation cases, they frequently find evidence not of sloppy or incorrect paperwork, but actual fraudulent situations.

We are at the tip of the iceberg these days in uncovering mortgage fraud. If you have refinanced over the last few years, and if you had some equity to begin with, and if your loan is for an owner-occupied single family house, you may be able to pursue your lender for any violations.

Seek the counsel of a lawyer who specializes in truth in lending violations. There are specific laws that govern how your mortgage lender is supposed to put the paperwork together and if you bring your paperwork to a lawyer who specializes in this, they can quickly see if there were violations.

If there were, you could sue your lender for rescission. Meanwhile you can get a foreclosure sale postponed. Sometimes these cases drag on for years. Meanwhile, you can avoid making mortgage payments and eventually, if you win, you can be much better off.

I am not encouraging people to not make mortgage payments. You must seek advice from a competent lawyer. And you must be prepared to pay legal fees. This solution may appeal to some people who know that they were treated badly and who feel that their lenders or mortgage brokers victimized them. It is another avenue for some people to pursue.

The sale of Linda's house has been postponed because she worked through a nationwide organization that helped her talk to the lender and explain the situation. The lender voluntarily stopped the foreclosure sale and hopefully Linda can get some help for her difficult situation.

Perhaps you can, too.