In the year 2014, there were more than one-million foreclosure filings made. While many of these foreclosures represented buyers who failed to meet the terms of their mortgage agreement, the harsh reality is that some of these filings were made against innocent people in a process known as wrongful foreclosure.
Wrongful Foreclosure
At its core, a wrongful foreclosure is a situation where a lender completes a foreclosure filing against a borrower based on misinformation or predatory lending practices. In some cases, it might appear that the foreclosure is legal on the surface, but when the case is investigated further, it's revealed that it's not. There are a number of scenarios that fall in this category.
Misapplied Payments
In this technologically-advanced era, errors are still possible. Something as small as a computer glitch can prevent payments from being correctly credited to a borrower's account, which can lead to a wrongful foreclosure. If misapplied payments are caught early, the situation can typically be resolved. However, there are cases where this goes on for an extended period of time and places the homeowner at an extreme risk for losing their home.
Inaccurate Information
A wrongful foreclosure can occur when lenders give borrowers inaccurate information or instruction. In a study that focused on borrowers looking to be accepted in a loan modification program, out of 373 participants, 175 people stated that they were incorrectly advised by a lender representative to miss mortgage payments in order to strengthen their chances of being accepted in this program. In this type of scenario, instead of helping them with the loan modification after the missed payment, the lender could turn to foreclosure.
Get The Law On Your Side
If you have been met with this type of situation, organizing all your information and documentation from the lender should be your first priority. You can then take this information to an attorney. If you are in the process of the foreclosure, an attorney can help you present this information to have the process stopped.
In the event you have already been foreclosed upon, this still doesn't represent the end of your journey. In this case, an attorney can assist you with recouping any damages caused by the process including financial loss based on the value of the home, your legal fees and any emotional distress endured.
When it comes to foreclosure, the process isn't always black and white. While it is the responsibility of the borrower to meet the terms of the lender, it is also the responsibility of the lender to properly handle mortgage payments and give accurate information to their customers. For more information, contact Metropolitan Lawyer Referral Service Inc or a similar organization.
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