An Undeserved Foreclosure

Recently, I was talking with one of my neighbors who had received a foreclosure notice out of the blue despite the fact that they had been paying their mortgage and had not received any notice of deficiency in relation to their payments. They were stressed and frustrated, and they asked me if they needed to hire a lawyer. I had very little knowledge of the subject at the time, so I decided to do a little bit of research to see if I could find an answer for them. While I was doing research, I came across the website for Smith Kendall, PLLC, which provided quite a bit of interesting and helpful information on the subject.

I learned that there are many different ways that lenders unfairly foreclose upon homeowners, all of which are illegal. Banks can fail to provide appropriate notice of foreclosure if they begin the process of foreclosing on a home but do not inform the homeowner that they have missed payments. This is illegal because it does not allow the homeowner to take steps to remedy the situation and prevent losing their home because they are unaware that the process has begun. Second, lenders can be said to have “bad faith” on the loan. This happens when the lender delays or refuses payments on the debt that then leads to foreclosure, which would cause you to lose your home even if you did everything right. Also, lenders might overcharge for late payment fees, which are set at a regulated level, and these excessive charges can create a vicious cycle ending in foreclosure. Finally, lenders can offer loans with unfair terms that result from tricking their client, which makes foreclosure illegal as well.

Experienced lawyers can do several things when they help their clients fight wrongful foreclosure cases. Lawyers can help you stop foreclosure or reverse a wrongful foreclosure if the lender does not follow the strict regulations that banks and lenders must comply with when undergoing the foreclosure process. These guidelines are dense and specific, so it is important for a person who is being wrongfully foreclosed upon to seek legal help to ensure that no violation of compliance is missed by the court. Additionally, lawyers can help their clients recover funds after a foreclosed home is sold. If the bank is able to sell the home for more than is owed to the bank, the bank must pay the homeowner the remaining balance. This almost never happens unless the bank is forced to make this payment by an attorney. Lawyers can also help you file for bankruptcy if the bank is pursuing access to other assets using either Chapter 7 or Chapter 13 bankruptcy. This can help debtors retain control of unrelated assets that are at risk of seizure by their creditors.

I will definitely recommend that my neighbor consults with a lawyer quickly about the foreclosure notice they received. The legal side of the foreclosure process seems to be complicated enough that it would be extremely difficult to find success if you represent yourself, and even if you represent yourself and win, you might be leaving money on the table that an experienced lawyer would not.

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