9 Essential Facts Every Homeowner Should Know

1. You Have the Right to Send a Qualified Written Request (QWR)

Under the Real Estate Settlement Procedures Act (RESPA), a QWR forces your servicer to respond in writing and provide clarity on your loan, payment history, escrow, ownership, and servicing activity. It’s one of the strongest tools a homeowner can use to uncover errors and demand transparency.

2. Title 12 of the U.S. Code Explains What Banks Can and Cannot Do

Title 12 outlines the rules for national banks, federal savings associations, and credit unions. It specifies limitations on lending practices, defines who they can legally do business with, and sets restrictions on how they handle mortgages and consumer accounts. Understanding Title 12 puts power back in your hands.

3. Banks Do Not Lend Their Own Money

Under federal banking rules, including those derived from Title 12 and the Federal Reserve Act, banks generally do not loan out their own capital. They create credit through bookkeeping entries based on the borrower’s promissory note. This means the note itself is the source of value — not the bank’s cash.

4. Mortgage Servicers Are Limited in Power

Servicers are not the lender. They are not the owner of your note. They have limited authority delegated to them, and many cannot legally enforce a foreclosure unless they can prove they were authorized by the true creditor. Challenging servicer authority is a key defense.

5. The Word “Foreclosure” Has a Commercial Origin

Historically, “foreclosure” meant to close out or shut down an operation, and in older usage, the term referred to the closing of a military or governmental base. Modern foreclosure is a commercial process, not a punishment or criminal action — and it requires strict compliance with contracts and federal law.

6. The BAR Association Is Not a Government Agency

The American Bar Association (ABA) operates as a 501(c)(6) private trade association. It is not part of the government and does not grant constitutional authority. Attorneys are licensed through state bars, but the BAR itself is not a federal agency. This matters when evaluating who has lawful authority to act on behalf of banks.

7. You Have the Right to Demand Proof of Who Owns Your Loan

Under federal law and court precedent, only a Person Entitled to Enforce (PETE) can foreclose. You can demand:

• Original wet-ink note

• Chain of title

• Allonges

• Endorsements (including “without recourse”)

• Power of Attorney delegations

• Pooling and Servicing Agreements

If they can’t produce it, they can’t enforce it.

8. Federal Law Gives Homeowners Strong Rights to Correct Errors

RESPA, TILA, Regulation Z, and FDCPA give you the right to dispute charges, demand corrections, challenge servicing errors, and force the servicer to pause certain actions while reviewing your dispute. Most homeowners never use these tools — but they are powerful.

9. Filing a Chapter 13 Can Immediately Stop Foreclosure or Repossession

When used correctly, Chapter 13 creates an automatic stay that stops any foreclosure sale, repossession, or collection action instantly. It can give homeowners time to restructure payments, challenge accounting, or correct servicing misconduct.

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