As denoted by its name, an illegal foreclosure is a foreclosure that occurs in violation of the law. Even though lenders have the legal right to foreclose, their right is not unlimited. Under foreclosure laws, lenders are subjected to the basic rule that foreclosure must occur with cause, in addition to requirements concerning the steps involved in a legal foreclosure. The notice of default, for example, is a step that is necessary to the foreclosure process and must be issued in the appropriate time and manner. Outside of the requirements for the foreclosure itself, there are specific circumstances that, by law, may stop a foreclosure. The foreclosure will be illegal or at least subject to a lawsuit in cases where unfair lending took place, the loan failed to comply with the Truth In Lending Act, the homeowner is on active military duty, or an automatic stay is in place. For a homeowner to dispute an illegal foreclosure, they may need to file suit, most likely using a lawyer, through a legal action known as wrongful foreclosure.