What to do if you have a wrongful foreclosure lawsuit?

Homeowners who are losing their property or who have already lost their home to a bank foreclosure may be able to receive compensation, or negotiate a deficiency judgment waiver, as a result of mortgage lenders faulty Court documents.

Can a home owner Sue a bank for foreclosure?

In these situations, the borrower home owner may have a lawsuit for breach of contract, misrepresentation, or maybe a lawsuit based on intentional conduct (tort) against that bank.

What to expect in a Wells Fargo foreclosure lawsuit?

In that case, the home owner plaintiffs are aggressively seeking punitive damages by arguing that Wells Fargo deliberately made the initial deal without any intention of going through with it.

Can a Bank refuse to grant a foreclosure?

Instead, they are choosing to move forward with the foreclosure. It’s like the modification agreement never existed (except that the bank received more mortgage payments during those months of the trial period) or the banks just didn’t want to grant a modification.

Are there punitive damages in a wrongful foreclosure case?

For these reasons punitive damages can be sought in a wrongful foreclosure settlement. Important: Punitive damages awarded are capped by the Federal Government at 9 times (9x) of the actual damages proven at trial. For example, if an experienced attorney can prove $150,000 in damages the award would be $1,350,000.

How many people have been affected by wrongful foreclosure?

One of the more unfortunate occurrences has been the practice of wrongful foreclosure and mortgage fraud. Estimates are that at least 4 million American homeowners may have been impacted by these unscrupulous practices. From California to Texas to Florida; mortgage lenders have been exposed using these techniques nationwide.

In these situations, the borrower home owner may have a lawsuit for breach of contract, misrepresentation, or maybe a lawsuit based on intentional conduct (tort) against that bank.

How do you redeem a foreclosure in Miami?

To redeem your property, you must pay the full amount of the Final Judgment (plus interest, fees and costs) to the Clerk of the Courts. Payment must be made in the form of cash, or cashiers’ check, made payable to the Clerk of the Courts.

Can a bank sue for wrongful foreclosure in Florida?

Because the Courts relied on this information to grant ownership to the banks, homeowners may have a legal claim that the banks have unlawfully taken their property, entitling the homeowner to receive compensation from the settlement fund or maybe even setting aside the foreclosure judgment and/or sale. Florida Bank Reject Your Loan Modification?

What to do if you have a wrongful foreclosure?

Homeowner’s who feel they have been wrongly foreclosed should share what happened with a wrongful foreclosure attorney who may be able to help before it’s too late. Studies done by the Federal Government found that many banks were involved in fraudulent lending and unethical activity surrounding the servicing of consumer mortgages.

Why are there so many wrongful foreclosures in the US?

This could be as a result of an incorrectly applied payment, an error in interest charges and completely inaccurate information communicated between the lender and borrower. Some borrowers make the situation worse by ignoring their monthly statements and not promptly responding in writing to the lender’s communications.

Is there a statute of limitations on wrongful foreclosure?

The Statute of Limitations on wrongful foreclosure cases varies by State and situation. On average nationally, State Statute of Limitations is 2-4 years. Recently, the exact time limit for wrongful closure lawsuits has become more difficult to pin down.

How is bank fraud used in foreclosure cases?

The mortgage industry has used that argument successfully in foreclosure cases across the country. A party alleging bank fraud must prove that someone suffered a loss, said David Kwok, assistant professor at the University of Houston Law Center.

In that case, the home owner plaintiffs are aggressively seeking punitive damages by arguing that Wells Fargo deliberately made the initial deal without any intention of going through with it.

Can you be sued for the balance of a mortgage after?

Lenders may try to obtain a court order known as a deficiency judgment, in fact. It’s an attempt to recoup the difference between the loan balance and what the repossessed home eventually sold for. In the past, lenders rarely tried for such judgments. These days, due in part to their own shaky finances, many more are trying.

Can a second mortgage company sue a first mortgage company?

The Second-Mortgage Lender Might Sue You. If the second-mortgage lender doesn’t receive enough money from the first-mortgage lender’s foreclosure to satisfy the debt (and assuming you’ve stopped making the payments), it can sue you in court for the difference, as long as state law doesn’t prohibit this action.

Can a forgery cause a wrongful foreclosure?

Wrongful foreclosure can occur when foreclosure processing companies submit documents to courts that have not actually been signed by homeowners and bear a forged signature. This practice not only gives rise to a cause of action for wrongful foreclosure, but can result in significant criminal penalties as well.

Can a court find a wrongful foreclosure in Virginia?

Courts generally won’t find wrongful foreclosure if the mistake was minor and didn’t cause harm to the homeowners. Stephanie Reid has been writing professionally since 2007, with work published in the Virginia Bar Association’s “Family Law Quarterly” and the “Whittier Journal of Child and Family Advocacy.”

When does a wrongful foreclosure action take place?

A wrongful foreclosure action typically occurs when the lender starts a non judicial foreclosure action when it simply has no legal cause. Wrongful foreclosure actions are also brought when the service providers accept partial payments after initiation of the wrongful foreclosure process, and then continue on with the foreclosure process.

How can I avoid a wrongful foreclosure on my home?

The majority of foreclosures occur as a result of the borrower defaulting on their mortgage payments. The best way to prevent and avoid wrongful foreclosure is for the borrower to keep accurate records and to review each communication received with the lender. Communication with the lender is key.

Who is the best foreclosure attorney in Florida?

If you are in foreclosure, or know anyone who has lost their home to foreclosure, contact Larry Tolchinsky, a Florida foreclosure attorney, by email, or call him at (954) 458-8655 and he will be happy to answer your questions. He offers a free initial consultation and he promises an attorney from his office will return your call promptly

How to fight a wrongful foreclosure-CBS News?

Collier will file a claim for wrongful foreclosure and be paid from any settlement. Russell will do the same. Russell also thinks the LaRaces are owed something for the cost of repairing their home. Very few cases start as pro bono, however. Lawyers who defend consumers have bills to pay, just as the banks’ corporate attorneys do.

Can a court set aside a wrongful foreclosure judgment?

Additionally, because of these faulty Affidavits and other defects, foreclosure defense attorneys are, in certain limited circumstances, asking the Courts to set aside wrongful foreclosure judgments and, in some instances, the bank’s ownership after the foreclosure sale has occurred.

What happens when a debt is forgiven in a foreclosure?

When a debt is forgiven in a foreclosure action, taxpayers are considered to have made money. That means that the taxpayer or property owner not only loses the property but also may owe taxes on the difference between what was paid for the property (the value of the home) and what is owed on the mortgage (but forgiven in the foreclosure action).

How much debt can be forgiven from a foreclosure?

Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

What does it mean to be forced out of a foreclosure?

The term most often refers to the process of legally taking a home through foreclosure. In the final stage of foreclosure, the bank attempts to sell the home in a public auction, also referred to as forced sale. Foreclosure procedures vary greatly among states, but in most states a homeowner is not forced out…

What happens if my property is wrongfully seized and sold?

This can be the case in a number of legal actions, including home foreclosures, vehicle repossessions and storage locker auctions. Additionally, this party is often entitled to receive a deficiency judgment for any amount that the former property owner still owes after subtracting the proceeds and costs of the sale.

What happens to your property after a foreclosure?

The lender files the Notice of Default and the Notice of Sale. The lender must follow all state laws to the letter in order to claim your property and sell it at auction. Once the property is sold at auction, you have the right to any remaining funds after the lender recovers the money owed.

Can you sue a seller for not disclosing problems?

When people discover problems with a home they bought, they often want to know if they can sue the seller for failing to disclose the problems. As will be discussed below, there is a potential remedy a buyer may have against a seller, but these types of cases are often difficult to prove.

Is there a foreclosure fraud lawsuit in the US?

Foreclosure Lawsuits. Homeowners across the US were affected by foreclosure fraud in recent years. This foreclosure fraud may have involved faulty documents and/or procedures, which resulted in homeowners wrongfully losing their homes.

How can I avoid losing my house in foreclosure?

Homeowners often have legal ways to avoid losing a house in foreclosure. If you breach your mortgage contract, the lender can’t simply evict you from the home and take possession of the property. The bank generally must sell the house through one of two foreclosure processes: a judicial or a nonjudicial foreclosure.

When was the first foreclosure lawsuit filed in California?

In 2010, a California woman became the first person in that state to win her home back from a lender after it was foreclosed. The 73-year-old filed a lawsuit against Washington Mutual alleging wrongful foreclosure.

What was the Washington Mutual foreclosure lawsuit about?

The 73-year-old filed a lawsuit against Washington Mutual alleging wrongful foreclosure. The homeowner alleged that after she asked her lender to lower her monthly payments, she was told she would be sent a loan modification package. Instead, a real estate broker was sent to tell her the home had been foreclosed.

What do you need to know about foreclosure complaints?

The complaint — sometimes called a petition — for foreclosure lays out the claims of the foreclosure suit. It will describe: the defendants, along with their interest in the property. The complaint will also state what the lender seeks — called the “relief” — in the judgment from the court, namely that it wants to foreclose.

What’s the difference between a complaint and a petition for foreclosure?

The “complaint,” sometimes called a “petition,” for foreclosure lays out the claims of the foreclosure suit. It will describe: the defendants, along with their interest in the property. The complaint will also state what the lender seeks, called the “relief,” in a judgment from the court, namely that it wants to foreclose.

How are damages measured for wrongful foreclosure in California?

First, damages are measured by the value of the property at the time of the sale in excess of the mortgage lien against the property (i.e the equity in the property). Second, damages are available in the amount that is sufficient to compensate for all detriment proximately caused by the wrongful conduct. California Civil Code Section 3333.

How is a complaint served in a foreclosure?

The complaint is served to the borrower and any other defendants, along with a summons, and a notice of lis pendens is recorded in the county records. Keep reading to find out the difference between these three documents and what they mean in a foreclosure.

What to do if your house is wrongfully foreclosed?

If your home was stolen by the banks (or you are in the process of losing it) you may have legal options to stop the process! Homeowner’s who feel they have been wrongly foreclosed should share what happened with a wrongful foreclosure attorney who may be able to help before it’s too late.

How are damages determined in a wrongful foreclosure case?

Can a person Sue a bank for wrongful foreclosure?

Default must also include an exhibit of the instrument. Thus, the lender in a wrongful foreclosure suit cannot claim the borrower is in default unless they can produce the original note and deed of trust. If true, this would produce additional problems for the lender/creditor.

Who are the defendants in the Massachusetts mortgage lawsuit?

According to the lawsuit, defendant Ocwen Loan Servicing, LLC (now known as PHH Mortgage Corporation) serviced the plaintiff’s mortgage for a Massachusetts property, while defendant HSBC Bank USA, NA was assigned as the trustee in March 2013.

How does a nonjudicial foreclosure work in Colorado?

If the lender chooses a nonjudicial foreclosure, it must complete the out-of-court procedures described in the state laws. Though, Colorado nonjudicial foreclosures have a minimal amount of court involvement. After completing the required steps, the lender can sell the home at a foreclosure sale.

What are the most common cases of wrongful foreclosure?

One of the most common instances of wrongful foreclosure occurs when lenders, attorneys or consultants alter documents, forge signatures and fraudulently evict homeowners. State courts are required to oversee the foreclosure process in many states.

How does foreclosure work in the state of Colorado?

Rule 120 of the Colorado Rules of Civil Procedure requires the foreclosing lender to ask a court to authorize the foreclosure sale as part of the nonjudicial process. At the Rule 120 hearing, the court determines if the lender has the right to foreclose on the property and sell it.

Which is the best definition of wrongful foreclosure?

What is wrongful foreclosure? The definition of wrongful foreclosure is when a home is foreclosed on through the use improper methods. Foreclosing lenders wield inappropriate, unethical and intimidating methods in pursuit to take away the right to redeem a mortgage. How to spot a fraudulent foreclosure?

When did wrongful foreclosure start in the United States?

The banking and housing crisis that affected America in 2008 had severe and far reaching effects. In fact, we are still experiencing economic fallout from this event today. One of the more unfortunate occurrences has been the practice of wrongful foreclosure and mortgage fraud.