How much devastated you would stand if your property got sued due to alleged charges of wrongful foreclosure? Needless to say that, the USA legal system encounters numerous foreclosures which are not being handled while abiding the legal provisions and regulations. These areas of litigation have become a common instance, however, effective measures and precautions are becoming implemented to resolve the issues tactfully as well.
Causes of Action
The actions of wrongful foreclosure, which are being declared in the notice might be alleged due to some of the reasons hereby stated.
- Misapplied payments
- Breach of Contract
- Forced place insurance which is not required
- Inappropriate tax impound accounts
- Incorrect interest rate adjustment
- Negligent and premeditated infliction of emotional distress
- Unfair business practices
- Quiet title
- Inappropriate accounting for a confirmed chapter 11 or 13 bankruptcy plan
Dealing with all these legal intricacies is quite tedious and thus, require professional excellence of a lawyer specialized in Foreclosure Litigation.
Damages that are available to the Borrower
- Damages available to the borrower against a wrongful foreclosure include:
- Punitive damages and emotional distress if there’s any evidence of the trustee or servicer committing any sort of fraud.
- Compensation for detriment being caused to the property’s value.
- Malice or oppression in its unlawful conduct.
If the borrower ends up in winning the lawsuit and the charge against the lender are proven to be correct and true, the servicer is forced to cancel the foreclosure sale and pay legal bills of the borrower.
Cases of foreclosure litigation involve a number of discrepancies which, need to be dealt while following a set of precautions. On a concluding note; we would like to point out that maintaining proper communication in between the parties must be facilitated to avoid such kind of discrepancies and inaccuracies related to wrongful foreclosure.
