Suing the bank for wrongful foreclosure: What you Must Know

The great recession of 2008 was mainly due to lenders’ misconduct with regard to home mortgages. The crisis had severe and far-reaching effects on the world’s economy, especially in the banking and housing sectors. The federal government and several other states have since put in place stronger policies to protect homeowners from mortgage lender misconduct. Unfortunately, we are still experiencing the effects of that crisis to date. One of which has been the practice of wrongful foreclosure. Millions of homeowners have been affected by these unscrupulous practices. The good news is, now you can legally battle to keep your home.

What Is Wrongful Foreclosure?

Wrongful foreclosure is simply foreclosure that’s carried out using improper methods. Some lenders get trigger-happy in their quest to make as much profit as possible. As a result, they use unethical, intimidating, and inappropriate methods with the aim of taking away the right to redeem a mortgage. This has resulted in several families losing their homes unfairly. If you don’t act quickly, wrongful foreclosure can have devastating effects. For starters, it appears on your credit report as a foreclosure, making it almost impossible to get a mortgage in the future. It’s also emotionally distressing, especially when you lose your home and your loved ones are displaced out of the home.

Penalties

If your lender has unfairly forfeited your property, it’s important to speak up and fight to avoid foreclosure. The punishments for wrongful foreclosure can take different forms, including punitive damages and compensatory damages such as emotional distress. Once your wrongful foreclosure action is successful, you may be entitled to compensation for legal fees and most importantly, your lender will be stopped from foreclosing.

Lawsuit

When proving wrongful foreclosure, the most likely end result is a settlement. In other words, the lender will resolve the matter with a cash offer, title of the property, value of the property, or your equity in the property. In addition, if the lender committed fraud or acted with malice, you may recover punitive damages. There are, however, a number of factors that will determine how much you get in the settlement. They include:

Mortgage Amount

Being behind on mortgage payments doesn’t mean your lender can do whatever they want. There are several requirements and legal procedures that must be taken before forfeiting a property. Depending on how egregious the lender’s error is, you could receive compensation equivalent to the value of the property.

HBOR

One of the strongest defences for people facing foreclosure is the HBOR (Homeowner Bill of Rights). The most important provision of the HOBR is that it restricts dual-tracking –this occurs when a lender proceeds with foreclosure while the borrower is in the middle of getting a loan reviewed for a modification. Dual-tracking regulations can be a bit complicated. However, an attorney can help prove if a claim exists. If it does, the sale can be stopped and the lender will be required to cover your attorney fees.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Home and Living

The Anatomy of a Perfectly Cozy Reading Nook

The Foundation: Choosing the Right Space Selecting the ideal spot for your reading nook is the cornerstone of its success. Consider a quiet corner bathed in natural light, away from the distractions of modern life. The goal is to create a haven where one can escape into the world of literature without interruptions. Location Matters…
Read More
Breaking News

Breaking Property News – 21/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Government announces new Short-term lets rules to protect communities and keep homes available. Press Release London February 2024 – Overview – ‘Short-term lets rules to protect communities and keep homes available. Local residents will be protected from being pushed out of their communities by excessive short-term…
Read More
Breaking News

Enhancing Security and User Experience with Face Recognition Technology

In an era where digital interactions dominate our daily lives, the need for robust and convenient security measures has never been greater. Traditional methods of authentication, such as passwords and PINs, are increasingly susceptible to breaches and hacks. In response to these challenges, face recognition technology has emerged as a cutting-edge solution, offering a unique…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 21/02/24

Headlines The average 5-year fixed mortgage rate is now 4.72%, up from 4.62% a year ago The average 2-year fixed mortgage rate is now 5.08%, up from 4.95% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.67%, down from 4.68% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.19%, down from 4.23% a year ago The average monthly mortgage payment on…
Read More
Home and Living

Standing Desks Unveiled: Exploring the Health Benefits and Considerations

In recent years, standing desks have gained popularity as a revolutionary solution to combat the negative effects of prolonged sitting. As the modern workforce becomes more health-conscious, the standing desk has emerged as a promising alternative to traditional seated workstations. In this article, we unveil the health benefits and considerations associated with standing desks, providing…
Read More
Home and Living

6 Handy Tips for Maintaining Your Heating System

As the weather gets cooler, having a heating system becomes crucial for a home atmosphere. Besides the quality of your heating system and its installation, regular maintenance is key to keeping it running, lasting longer and using energy wisely. A maintained heating system not only keeps you warm but also helps save energy making your…
Read More