“There’s no place like home,” as they say. For most of us, a home gives security. It gives us a place where we can relax, become comfortable, and protection from natural forces. Getting your house foreclosed can be a challenging experience. But a wrongful foreclosure is even more difficult. A Plano wrongful foreclosure attorney will probably guide you to the relevant legal actions available to you for whatever reason your property was wrongfully foreclosed.
Wrongful foreclosures arise from a banks’ lack of due diligence when processing claims. While banks have continuously denied this, foreclosure lawyers are saying that this is not only happening but is widespread. Here are some of the common errors of banks that result to a wrongful foreclosure:
1. The homeowner was not in default but faced foreclosure
Sometimes banks have the tendency to mistakenly foreclose a property even if the owner was not in default. This error is often due to miscommunication between lenders, servicers, title insurers, foreclosure law firms, and other bank contractors.
2. Homeowners were adviced that they were qualified for a loan modification
In a recent survey, 373 homeowners revealed that they were incorrectly adviced to stop making mortgage payments to become eligible for loan modification. In addition, a report by Courthouse News Service revealed that some homeowners have either lost or came close to losing their property because the bank told them to default and then foreclose.
3. Homeowners were behind on their mortgage but could have caught up if not for the additional fees
The mortgage servicing industry has received a lot of criticism for deceiving consumers by charging hidden fees such as late fees, broker-price opinions, inspection fees, and others. The Federal Trade Commission advises consumers to read billing statements first to guarantee the legitimacy of fees.
4. Dual track of foreclosure and loan modification processing
Banks tend to process foreclosures and loan modifications simultaneously resulting to foreclosure of the property. The Federal program requires a mortage broker or servicer to provide borrowers a denial notice before foreclosing their property.
5. Ther bank was not able to provide prrof its standiong to foreclose
Even if the homeowner is clearly in default for reasons outside to servicer action, the servicing company still cannot foreclose the property. It has to be the borrower or his representative.
Losing a home can be an extremely embarrassing experience especially when it was through the negligence or error of another person.