Many homeowners have discovered that foreclosures are often unfairly or unjustly done in accordance with the law. Unjust foreclosures continue to be a difficulty, but buyers are fighting by suing for an unjustified foreclosure.
An unjustified foreclosure occurs on a daily basis, whether because of malice, negligence or a simple mistake. Seizures may seem like a statistic, but for the family and the owner facing the nightmare, it's infuriating and disruptive.
What is an unjustified foreclosure?
Unjustified foreclosure is a foreclosure improperly exercised by the lender. There are specific rules that define the appropriate procedure. These laws are necessary considering the repercussions of taking someone home. Each "I" must be pointed and each "t" crossed – or foreclosure is not legitimate.
Since banks exist to make profits and not to help borrowers maintain their lifestyles, they can be happy with the trigger. When a bank is wary of confiscation, laws are often ignored. The result is a family that has taken its place unfairly, and often the family does not know where to turn.
The punishment for improper possession is not engraved in stone. For there to be penalty, the borrower must speak and act to fight foreclosure. If borrowers feel that they have no recourse, foreclosure will occur and nothing can rectify the situation.
The most common result of the prosecution of an unjustified foreclosure is a settlement. A settlement means that the lender will solve the problem with an offer of money or title because the case goes to trial. A variety of factors determine the amount that borrowers can get in the settlement. The considerations include:
Amount of Mortgage
How blatant is the lender's mistake and more. Just being late on a mortgage does not mean that the bank can do what it wants.
Some rules are little known to the laity.
<img class="aligncenter size-full wp-image-38759" src="https://businessdigit.com/wp-content/uploads/2018/05/1525614751_36_what-happens-when-homeowners-begin-to-sue-for-wrongful-foreclosure.jpg" alt=" HBOR "width =" 810 "height =" 540 "/>
The strongest legal theory for people facing foreclosure is the Owner's Bill of Rights – or HBOR.
The strongest rule of HBOR is that which forbids double tracking. Double tracking occurs when a bank customer is in the process of obtaining a loan review while the bank makes a seizure – even by reviewing the loan modification application. It can be a scary chicken game for the owner because the bank tries to force it before the change is evaluated.
The double tracking rules are complicated. To prove that the credit institution is double tracking, the customer must prove that a completed application has been returned with all the necessary documentation. The client must also prove that the bank is conducting a review. Sending a loan modification request to the bank by e-mail will not do so. The law has exceptions for that.
Although these types of cases are difficult to prove, the sale can be stopped if a claim exists. Not only that, but laws require the bank to cover your legal fees. HBOR also requires specific advice before the sale.
Denial of Neglect
Another common tool against the bank is negligence. Californian courts, for example, are beginning to impose a "duty of care" on banks to properly handle changes. The duty imposed on banks is violated if the bank inappropriately refuses a loan modification. Let's say your income is $ 100,000 and the bank used $ 60,000. If you can prove the bank's refusal to use the appropriate numbers that would otherwise have been accepted, you can bring an action for damages. Often, the courts stop a foreclosure until they assess the claim using the appropriate information.