There are many illegal foreclosures. You have the right to challenge an illegal foreclosure in court. Your lender must follow the foreclosure laws and have a legal reason to institute foreclosure proceedings against you. Whether or not you suspect a wrongful foreclosure, you should speak to your attorney immediately if your lender has instituted foreclosure proceedings against you. Lenders take negotiations more seriously if you have a legal representative, and you will get faster and better results.
Wrongful Actions Committed by Lender
The following actions are considered wrongful foreclosure:
- Your lender did not follow your state foreclosure laws
- The lender does not own your mortgage. The lender that is listed on your mortgage documents is the lender that must institute the foreclosure proceeding, unless they signed and recorded an assignment to another lender or loan servicer. Because mortgages get assigned many times before they are sold to investors, lenders and/or loan servicers fail to sign assignments and record them as required.
- The lender does not have the original note in their possession.
- If you are not in default, your lender cannot institute a foreclosure against you.
- Your lender committed predatory loan practices against you.
- Your lender did not give you an opportunity to respond to the foreclosure proceeding.
- The lender failed to serve you with legal notices or sent notices to the wrong addresses.
- Your lender violated Truth in Lending Laws (TILA) or Real Estate Settlement Practices Act (RESPA) laws.
A foreclosure defense attorney will be able to determine if there has been a wrongful foreclosure proceeding filed against you by reviewing your foreclosure mortgage documents. Lenders make many mistakes and sometimes break laws. Your attorney is an expert at finding irregularities and lender mortgage law violations in your loan documents to raise legal defenses and get your foreclosure dismissed. If your lender violated TILA and RESPA laws, they are also subject to penalties and fines so they would rather find a solution to resolve the matter. Your attorney will have more bargaining power to get you a mortgage modification, a refinance, a short sale, a deed in lieu or other option to save your home from foreclosure.
Consult with a Foreclosure Defense Attorney
A foreclosure defense attorney is an expert in foreclosure defense law, and is the only person qualified to defend you in a foreclosure action. Foreclosure defense law is a specialty practice that not all attorneys are skilled and knowledgeable about. By using a foreclosure defense attorney, you have higher odds of getting a wrongful foreclosure dismissed and saving your home from foreclosure.
