Dodd-Frank & Private Lenders on Owner Occupied House

[Account Closed]

If a private lender (individual, not a licensed lender) violated several Dodd-Frank regulations in giving a 2nd mortgage, what would happen if the lender tried to foreclose?

Violations include:

"Lender" knew "borrower" was an owner occupant

Lender did no credit check.

Lender did no income check.

Lender is threatening to start foreclosure process after 7 days late on 1 payment. 

Lender knew the funds where going to be used for personal expenses and not business/investing expenses.

Lender made the loan in the name of a private individual, not an LLC.

Thank you in advance. 

Let me know if there are any questions please.

[Ron S.]

Originally posted by @Account Closed:

@Ron S.

If you read this thread, you would see multiple times where I said I will be talking to an attorney after doing my own due diligence.

Posting on this forum was apart of that due diligence. So far I have received only "guesses" from "loan originators." If someone gave me a concrete answer w/ a sample case to highlight the answer, I wouldn't debate with them.

Instead, I am being met w/ people like you that don't have a clue as to what the answer is, but they decide to spew anyways? 

Again people, if you don't have experience w/ this situation, please don't respond. 

 Um...yeah...we all (Most of us) do have experience with this. My experience with this type of situation is that there is usually some guy that trolls the internet looking for ways to say, "Hey...I was stupid...how dare you lend me money and expect me to pay it back"...and then look for people to rally behind them and support their cockamamie idea that somehow they are the victim. They then go and half read Dodd-Frank (Like you can half read something that long and complex) and then claim they have the laws and rules to spank the dastardly lender and again, look for people to rally behind them and support their tyrannical claims and views that again...they are the victim. They then try to go find some attorney to take their case on contingency because its of course a slam dunk and hey! Maybe they'll even make it a class action claim and they'll get rich off of it and then when no attorney wants to engage the delusional potential client, that guy then goes and flames and threatens all of the attorneys on as many social media platforms as possible because OMG...they are a victim and they have rights and they should be represented for free!

...but that's just me. I'm sure your a victim here and I'm sure you went into this contract with eyes wide open, with full intentions of holding up your end of the deal and that this predator was intending on screwing you over from the get go.