What You Need to Know About Wrongful Foreclosures
Due to the instability of today’s market, many individuals face financial issues that are becoming harder and harder to overcome. At present, millions of Americans are currently in debt. One of the most common problems that these individuals face is the threat of losing their home due to their inability to pay their mortgage. More and more people experience foreclosures in the U.S. Because they are unable to meet pay off their debts, creditors or lenders attempt to recover their balance by forcing assets, particularly their homes, on sale.
According to the Office of the Controller of the Currency (OCC), around a third of all individuals who faced foreclosures had lost their homes and other assets due to errors made by banks and mortgage companies. These instances are known as wrongful foreclosures. For individuals already struggling to resolve their financial burden, losing their home can be an extremely stressful situation. The idea that they have to go through such an ordeal because of someone else’s error is particularly maddening. When creditors and money lenders pursue foreclosures through dodgy and even downright illegal practices, it’s important that the individuals facing the threat of losing their valued home and properties are protected by the law.
The website of Gagnon, Peacock & Vereeke, P.C. points out the following scenarios as common practices that indicate wrongful foreclosures. Homeowners can pursue appropriate legal action if their situation is applicable to the following:
- Lender has failed to provide the homeowner with sufficient and appropriate notices regarding their late payments
- Lender overcharging the homeowner with fees for late payment
- Lender bad faith and predatory practices
There are other specific scenarios that might be considered as an act of wrongful foreclosure. If you feel like you have been subject to such illegal practices, your best recourse is to consult with an experience real estate litigators for more information.