What constitutes a wrongful foreclosure?

Wrongful foreclosure occurs when a lender begins a non-judicial foreclosure action without sufficient legal cause. Should the lender accept a partial payment after initiating foreclosure actions then continue with the proceedings this would also constitute wrongful foreclosure. Any predatory lending strategy or other actions which mislead homeowners are illegal, however you, the borrower, must file the wrongful foreclosure action with the court against your lender. In this action you will claim there occurred an illegal, fraudulent or willfully oppressive sale of your property, and you may additionally allege emotional distress, asking for punitive damages as well. Wrongful foreclosures may be due to incorrect interest rate adjustment, incorrect tax impound accounts, misapplied payments, a forbearance agreement which was not adhered to by the lender, improper accounting for a confirmed chapter 11 or chapter 13 bankruptcy, or a flat out breach of contract. Additionally, should your lender engage in unfair business practices and either intentional or negligent infliction of emotional distress upon you, then you also have good grounds for a wrongful foreclosure suit. At any time prior to the actual foreclosure sale, you can apply for an injunction to stop the foreclosure sale until such time as the issues in the lawsuit are resolved. The injunction will only be issued if the court believes you are entitled to it, or if not issuing the injunction will subject you to irreparable harm.  A wrongful foreclosure lawsuit can take anywhere from ten to twenty four months.

Call an Attorney

Because your family’s home is at stake, it would be wise to call an attorney who is knowledgeable in this area, and explore your options.