Wrongful foreclosures do happen. Homeowners facing foreclosures are often troubled a great deal as the foreclosure notice is difficult to handle. Things get from bad to worse when the foreclosure is erroneous. There is hope as homeowners can fight an erroneous foreclosure.
As much as homeowners can fight a wrongful foreclosure, it is not an easy process. For instance, where does one start? What constitutes a wrongful foreclosure? Homeowners facing a wrongful foreclosure need a wrongful foreclosure lawyer who is knowledgeable enough in foreclosure matters.
What Constitutes a Wrongful Foreclosure?
In most states, a wrong foreclosure typically occurs when the lender initiates a non-judicial foreclosure. Whether take you to court or not, the buck stops with the foreclosure agreement. Ideally, some foreclosure contacts allow the lender to initiate the foreclosure without going to court whereas others require the lender to use the court. A lender who forecloses outside these standards commits a wrongful foreclosure.
Fighting Wrongful Foreclosure
The only way to fight a wrongful foreclosure is to use legal means. Applying for wrongful foreclosure, being a technical subject calls for the input of a lawyer who will them explore common actions that might lead to a wrongful foreclosure. Here are some of these acts
Improper notice to homeowners
The lender is mandated to visit the borrower and assess their situation before issuing the notice of default. Different jurisdictions have different requirements on how to go about filling the notice of default before commencing in the foreclosure. If the lender initiated the foreclosure within the grace period after contacting the client, the borrower could initiate a wrongful foreclosure.
Not Mailing the Homeowner
The notice of default must be mailed to the homeowner and any other relevant party. If the lender fails to notify the homeowner and proceeds with the foreclosure, the foreclosure is deemed illegal.
Not Providing Payoff Figures
Some jurisdictions require the lender to provide details of all amounts owed and the date by which the borrower is expected to pay off any outstanding costs. Failure to provide these details can be illegal and stop the foreclosure action.
Loan modification refusal
Lenders are legally mandated to consider loan modifications. Failure to recognize the borrower’s modification request constitutes wrongful foreclosure action.
Wrongful foreclosures can happen to anyone. This does not mean that you are doomed. If you feel that the foreclosure was not fair, contact a lawyer specializing in real estate and wrongful foreclosures to see whether you stand a chance of getting the property back.