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You’re a homeowner making your mortgage payments on time, assuming everything is going well. Or maybe you’re working on a loan modification and believe you’ve reached an agreement. What happens when you suddenly get a complaint and summons saying your home is being foreclosed on?
After the initial panic, you should call Loan Lawyers. Our team has saved over 3,000 homes and properties from foreclosure for our clients. Let us our knowledge of the Florida foreclosure laws and experience to work on your wrongful foreclosure. Call our firm or contact us online for a free consultation to learn how we can help you.
When Can a Foreclosure Be Considered Wrongful?
Wrongful foreclosure occurs when a lender illegally initiates foreclosure proceedings. As a result, the borrower suffers financial loss or damage to their credit score.
Some common examples of wrongful foreclosure include:
- A lender foreclosing on properties where the borrower is current on their payments
- A lender not providing enough notice of foreclosure proceedings
- A lender foreclosing on a property where the borrower is actively pursuing a loan modification
- A lender using fraudulent or deceptive tactics, such as falsely claiming that a borrower is in default or charging improper fees
- A lender continuing foreclosure proceedings after the borrower files for bankruptcy
Causes of Wrongful Foreclosures
Wrongful foreclosure complaints arise when a lender reclaims a homeowner’s property through foreclosure proceedings in error or due to improper conduct by the mortgage servicer or lender. Some of the most common reasons for wrongful foreclosure include:
- Incorrect adjustment to interest rates – Foreclosure can occur when the lender misapplies the interest rate, resulting in the homeowner making incorrect payments.
- Incorrect tax account – If the lender mistakenly records the homeowner’s property taxes as unpaid, it can result in the lender initiating foreclosure proceedings.
- Misapplied payments – The lender may incorrectly record the homeowner’s payments or apply the funds to the wrong account. This can result in improper late fees, interest charges, and other penalties that lead to foreclosure.
- Breach of contract – A breach of contract occurs when the lender does not follow the terms of the mortgage agreement. For example, the lender may fail to give the homeowner proper notice before starting foreclosure.
- Forbearance agreement – These agreements are designed to temporarily relieve homeowners from their mortgage payments. If the lender’s records are incorrect, foreclosure proceedings could begin too early.
- Unfair business practices – Some borrowers may lose their homes despite being in the process of negotiating a modification. For example, mortgage servicers may start foreclosure proceedings while simultaneously considering a borrower’s application for a loan modification.
How Our Florida Foreclosure Defense Lawyers Can Help
The legal team at Loan Lawyers can help you defend against a wrongful foreclosure in Florida to protect your home and equity by:
- Thoroughly investigating your situation to recover all relevant evidence and documentation
- Reviewing the foreclosure notice and other paperwork in your case to evaluate the validity of the foreclosure
- Explaining your legal rights and options to you to help you make informed decisions about protecting your interests
- Dealing with the bank or mortgage servicer to take the stress of the foreclosure case off your shoulders
- Vigorously defending your rights and interests, including in court if necessary
What to Do After Receiving a Foreclosure Notice
When your bank or mortgage servicer sends you a foreclosure notice, steps you should take to protect your rights and interests include:
- Read the foreclosure notice carefully.
- Gather all relevant paperwork, including a copy of your loan and mortgage documents, any mortgage assignment notices, correspondence with the bank or mortgage servicer, or mortgage satisfaction notices.
- Contact the sender to request verification that they hold a note or mortgage on your property.
- Consult an experienced foreclosure defense attorney to discuss your legal options for fighting against an improper foreclosure. You have a limited time to respond to these notices, so you need to act fast.
How To Prove Wrongful Foreclosure in Florida
Here are some steps you can take to prove your case with the help of a wrongful foreclosure defense attorney:
- Gather evidence – You need to collect proof to support your claims, such as mortgage documents, the notice of default, any correspondence with your lender, and other relevant documents.
- Contact an attorney – A wrongful foreclosure defense lawyer can help you through the legal process, guide you on how to proceed, and prepare your case. Your attorney may investigate to gather evidence that can support your claim.
- File a complaint – The complaint should outline the details of your case and the supporting evidence. Your attorney will need to demonstrate that the foreclosure was wrongful by proving that the foreclosure was based on inaccurate or incomplete information, the lender failed to follow proper foreclosure procedures, or you were not given enough notice of the foreclosure.
- Attend court – You will need to attend all court hearings and trials. Your lawyer can represent you and argue on your behalf.
- Seek compensation – if you can prove that your home was wrongfully foreclosed on, you may demand compensation for any financial losses you have suffered due to the foreclosure.
Challenges of Proving Wrongful Foreclosure in Florida
Florida homeowners who receive an improper or wrongful foreclosure notice may face various obstacles and complexities in fighting to protect their homes. Common challenges of proving that a bank or mortgage service has initiated a wrongful foreclosure action include:
- Missing or discarded documentation that would prove your case
- Calculating interest or the correct balance on your mortgage
- Confusing chains of assignment of the note or mortgage
- Misapplied mortgage payments
What Damages Can a Wrongful Foreclosure Cause?
If you’ve experienced wrongful foreclosure, the type of compensation you may receive in a wrongful foreclosure case falls into two categories:
- Economic losses – These losses can include lost equity and expenses related to the foreclosure, such as legal fees or appraisal costs. If you were using the property as a rental property and lost income due to the foreclosure, you may be entitled to compensation. You may also recover losses caused by the lender’s wrongful actions, such as lost wages or profits from a business that had to close due to foreclosure.
- Non-economic losses – Wrongful foreclosure can be a traumatic experience for a homeowner, causing emotional distress, humiliation, anxiety, and damage to your credit. You may be owed compensation for these emotional losses and the devastating impact on your credit score.
Statute of Limitations for a Wrongful Foreclosure Claim in Florida
You may have a variety of potential claims if you believe the lender wrongfully foreclosed on your property. Depending based on the claims, different deadlines may apply. Your best course of action is to talk with our law firm as soon as possible.
Our Fort Lauderdale foreclosure defense lawyer is ready to utilize multiple solutions to help investigate and resolve your wrongful foreclosure as quickly as possible. Our success and reputation in the courtroom allow us to maximize leverage for you and help you achieve the best possible result for your situation.
Contact the Florida Wrongful Foreclosure Lawyers at Loan Lawyers
At Loan Lawyers, we are the experienced total foreclosure defense and debt solution law firm you can trust. With more than 100 years of combined legal experience helping consumers, we have successfully recovered over $50 million on behalf of our clients due to the negligence or fraud of banks, credit card companies, and debt collectors.
We believe in providing exceptional legal representation to our clients at an affordable price. That’s why we handle most consumer cases on a contingency fee basis, meaning we only get paid if we win. All other matters are handled at substantially reduced rates with reasonable payment plans. If you’re facing wrongful foreclosure or any other financial challenge, call or contact our Florida foreclosure defense lawyer online for a free consultation today.
