What Constitutes Wrongful Foreclosure?

June, 2014 by Alma Abell

A wrongful foreclosure in Lake Worth happens when the company or institution that holds the mortgage on the property illegally begins foreclosure proceedings. Unfortunately in this day and age of computerization the error lies with a computer glitch or an error in record keeping. A wrongful foreclosure is a very serious issue as it can result in loss of property, loss of possessions, damage to one’s credit rating and damage to one’s personal reputation.

In many cases wrongful foreclosure happens due to seemingly simple errors that compound or snow-ball over time. A mortgage payment may have been credited incorrectly, perhaps interest was calculated wrong or changes to the mortgage were applied incorrectly; these or other minor issues can trigger threats of foreclosure from the lender for no good reason. Of course the homeowner also has some responsibility; they should check any documentation from the mortgage holder carefully, check bills and receipts pay on time and reply to any communication promptly. If the smallest of errors are picked up by the homeowner it is prudent for him or her to contact the lender and have the error corrected and to make sure, insist on written confirmation of the conversation and the correction that has been made.

According to law, lenders are required to give homeowners written notice of impending foreclosure and allow the homeowner a period of time to correct the issues that may be the cause of foreclosure proceedings. Laws vary considerably based on jurisdiction so it behooves anyone who has received a threat or notice of foreclosure to talk to a lawyer who is seasoned in dealing with these matters. If the homeowner has been religious in paying the mortgage payments or is not in violation of any home ownership laws then receipt of notice demands immediate attention, most legal luminaries suggest calling a foreclosure lawyer.

The worst case scenario is that foreclosure in Lake Worth takes place with no warning at all. There are documented cases where homeowners have never received any notice of foreclosure, never missed a mortgage payment or didn’t even have a mortgage with the institution. It is even a fact that people have returned from a vacation to find that their house has been padlocked and a big “in foreclosure” sign nailed to the house. Obviously if anything like this happens a lawyer must be engaged immediately to set things right and get compensation for these illegal actions.

If you are being threatened with foreclosure in Lake Worth, whether it is substantiated or not, you have certain legal remedies that you can avail of.