The foreclosure of a home must be handled in accordance with clearly defined rules and procedures, but sometimes the process is not executed properly. The foreclosing lender may act negligently or intentionally in a way that constitutes wrongful foreclosure and violates your rights as a homeowner.
If your foreclosure is tainted by fraud or mistakes, you can bring a civil cause of action against the responsible parties. Improper conduct in the foreclosure process includes a number of actions such as erroneous documentation, negligent review procedures, and dishonest lending practices. For example, when a foreclosure occurs, documents must be signed in person by the homeowner and submitted to the court. A foreclosure processing agency may forge a homeowner’s signature and submit documents to the court, which can result in criminal penalties for the company.
In cases where the court system handles foreclosures, “robo-signing” can constitute improper conduct. This occurs when banks are responsible for reviewing documentation related to the delinquent homeowner’s loan (such as missed payments and the amount of the default) prior to submitting an affidavit validating that the owner is in default on a current loan. In the past, bank employees have certified that the documents are correct without actually reading them for accuracy. This practice of producing false affidavits is known as robo-signing and also carries significant penalties for the lending institution.
There are also rules that govern foreclosures in each state. For example, some states provide homeowners with the right to redeem their property if certain conditions are satisfied. There are also laws that pertain to judicial sale foreclosures that the lender must comply with, such as providing notice, an opportunity to cure the default, and filing a suit to obtain the right to foreclose on a property. The lender must fully and carefully comply with all these procedures or the judge can determine that the foreclosure was wrongful and the process must be repeated (so long as the errors were not minor or inconsequential). The tort of wrongful foreclosure can be remedied by damages or injunctive relief (when warranted) to negate the sale.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at https://www.markweinsteinlaw.com to find out how they can advise you.