When foreclosing on a house, banks are required to submit detailed information proving they have a right to the property, including the original note and evidence that the homeowner hasn’t made their mortgage payments. Unfortunately, mistakes, inefficient systems, and flagrant disregard for the law often lead banks to foreclose on homes without due process, even if the loan isn’t in default. If your case includes any of the following common signs of wrongful foreclosure, contact a debt relief attorney immediately.
4 Common Signs of Wrongful Foreclosure
1. You’re Current on Your Payments
Miscommunication between different departments of the same bank may lead to someone initiating foreclosure proceedings against borrowers who were not in default. In some cases, a lender may have started foreclosing on the previous owner and failed to dismiss the case after the property was sold.
2. You’ve Started the Loan Modification Process
Federal law prohibits lenders from foreclosing on a home while the borrower is negotiating a loan modification, a practice known as “dual tracking.” Unfortunately, dual tracking is still very common, due to a failure of bank departments to communicate with one another.
3. The Bank Has Accepted Partial Payments
While many lenders refuse to accept partial payments on past due amounts, some will work with borrowers to make up arrears over time. If your lender has accepted partial payments then moved to seize the property, you may have grounds for a wrongful foreclosure claim.
4. The Paperwork Is Not in Order
Mortgage loans change hands frequently, so the company to which you make your payments may not be the same one from which you originally borrowed the money. It’s not uncommon for important documentation to be lost, including the original promissory note. If the lender’s foreclosure suit doesn’t include the note or only has a certified copy, their action may be considered a wrongful foreclosure.
With over 11 years of experience and a hands-on approach to their clients’ financial problems, Affinity Law Group has helped borrowers throughout Oahu reclaim their lives from debt. If you believe you’ve been the victim of a wrongful foreclosure, they’ll identify all of your options and fight to protect your interests. Visit their website now to find out how they can help, and call (808) 545-4600 to schedule a consultation with a debt relief attorney today.