What is Wrongful Foreclosure?

Apr 03

Facing financial troubles can already cause a lot of stress. However, when an individual fail to make payments on mortgage, they could also stand to lose their most valuable possession. It’s not hard to imagine that losing one’s home can be a devastating experience. Unfortunately, foreclosure is an experience that is becoming increasingly widespread across America.

Even more alarming is the fact that such incidents could have been avoided if not for negligent errors. According to data gathered by the Office of the Comptroller of the Currency (OCC), about a third of all foreclosed borrowers faced to lose their homes due to errors on the part of banks and mortgage companies. All in all, 1.2 million borrowers came to face wrongful foreclosure.

Foreclosure is basically a legal process where a creditor or lender attempts to recover debts incurred by a borrower that has not been making payments through forcing the sale of certain assets. Most of the time, this asset is an individual’s home. Wrongful foreclosure happens when a bank, mortgage company, or any other money-lending financial organization pursues this process illegally.

According to the website of real estate litigation lawyers at Gagnon, Peacock, & Vereeke, the following issues are typical factors in rendering a foreclosure illegal:

  • Bad faith on part of the lender
  • Errors and continued use of banned practices
  • Predatory lending practices
  • Failure to provide borrowers with appropriate and sufficient notices
  • Overcharging homeowners through additional late payment fees

These are just some of the many issues that can allow wrongfully foreclosed homeowners enough ground to fight illegal practices. If you are currently facing a wrongful foreclosure, know that you have legal options that could help you navigate through your dilemma. Your best recourse is to consult with experienced legal counsel in your area, such as a Plano wrongful foreclosure lawyer.

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