If you think this is happening to you, or has already happened you need to know the basics of how to handle a wrongful foreclosure. First, understand what a wrongful foreclosure is and what its characteristics are. A wrongful foreclosure is when a home is foreclosed on by a mortgage lender in an illegal manner, or when they use methods during the foreclosure that are not lawful.
When is Foreclosure Illegal or Wrongful?
How can you know if your mortgage lender is foreclosing or has foreclosed in an illegal manner? There are three things you need to do; first find a copy of your mortgage, which in some states is called a Deed of Trust. You probably don't remember this when you signed all those pages at the attorney's office the day you bought your house - but your mortgage document outlines the steps your lender can and will take if you don't make your mortgage payments on time.
Check Your Loan Documents
Read your mortgage; this is where you can see if the lender's actions don't line up with what they should be doing. Think you won't understand it? Find it anyway because you are going to need it. The second thing you need to do is gather all your information regarding payments and any other written communication you have had with your lender regarding payments, loan modifications, forbearance...anything and everything is important. Make sure the information is organized and make a copy of the entire file, which you'll need for step three.
Talk to a Foreclosure Defense Attorney
The third thing that you need to do to determine if you have been or are involved in a wrongful foreclosure is to contact and meet with an attorney who specializes in foreclosures. Although this is third on the list, these things need to happen as quickly as possible, particularly if you have not yet been foreclosed on. Only a foreclosure attorney can advise you as to whether or not you may have been wrongfully foreclosed on, because in addition to reading and interpreting the terms contained in your mortgage agreement with your lender, your attorney can explain foreclosure laws in your state, what the process is and what your best next steps are. The earlier in the process you contact an attorney, the more likely he or she will be able to help you.
You can also help yourself by keeping communication open with your lender. Read everything they send you and talk with them immediately at the first sign of a problem.
