Are there any laws or regulations that limit the amount of money a lender can sue me for?

In Texas, a lender can sue a homeowner for the full amount of the mortgage debt the borrower failed to pay, plus any foreclosure costs and late fees. The lender can also seek an additional judgment from the court for any additional losses resulting from the foreclosure. However, there are certain laws and regulations that can limit how much a lender can collect from the homeowner in a foreclosure. The Texas Fair Debt Collection Practices Act (FDCPA) prohibits lenders from charging excessive interest, fees, or other charges on the debt. The FDCPA also requires the lender to clearly disclose to the borrower any fees or charges associated with the mortgage debt. In addition, the Texas Home Equity Loan Act limits how much a lender can collect from a borrower in foreclosure. Under this law, the lender can only recoup the amount of money that the borrower actually owes, plus up to 20% of the fair market value of the home. In addition, the lender is not allowed to pursue an additional judgment for additional losses. Finally, the Texas Homestead Preservation Act provides an additional layer of protection for homeowners in foreclosure. This act limits the amount of a loan that a lender can collect from a homeowner in a foreclosure. This amount is limited to the unpaid principal balance, plus any interest, late fees, and foreclosure costs. By understanding these laws and regulations, homeowners in Texas can get a better understanding of their legal rights and the limitations on how much a lender can collect from them in a foreclosure.

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