What Constitutes a Wrongful Foreclosure?
Wrongful foreclosure is a civil cause of action, often based on allegations of fraud, but also for violations of statutes, regulations and processes. Violations and fraud can occur across multiple facets of the mortgage servicing process, through the collections and foreclosure process, and even into the eviction process. Lenders and servicers routinely commit the same errors and violations including botched documents, defective notices, missed timelines to list just a few. There are so many ways that lenders and servicers can make mistakes, both accidently and intentionally, that every case is truly unique. Over the past 10 years’ clear patterns have evolved for certain lenders and servicers and the kinds of wrongful acts or actions they commit, compelling legislatures, regulators and law enforcement to write new laws and regulations to protect borrowers, and creating volumes of case law.
Each jurisdiction, federal and state, handles claims of wrongful foreclosure differently, with some states aggressively penalizing perpetrators, while other states are more reluctant to intervene. The federal courts have been more protective, some might say even prejudiced on behalf, of lenders, servicers and institutional investors.
One of the most important considerations to undertake before pursuing a wrongful foreclosure complaint is determining how the borrower was damaged. Damages are perhaps the most essential element of a wrongful foreclosure claim, and there are many ways a borrower can be damaged. The more “types” of damages a borrower incurs not only strengthens a wrongful foreclosure case, but provides the borrower more ways to be compensated. Damages can be recovered by borrowers in many ways, typically in home retention or an award of payment which can come from Compensatory Damages, Punitive Damages and Statutory damages and combinations of all of these.
To find out more about how you may have been damaged, what rights you have and how you can pursue your wrongful foreclosure click the link below and start your no cost review today.
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