How to Handle a Wrongful Foreclosure
Being subject to a foreclosure lawsuit is serious and frightening. It happens to many people as a result of circumstances beyond their control. Unexpected financial emergencies can make paying the mortgage on time simply impossible, leading to foreclosure. The foreclosure process can be delayed or stopped entirely, but most people are unaware that they have any power over their situation, or how to use it.
Frighteningly, it is entirely possible to be foreclosed upon without having done anything wrong. Often times, predatory lenders may offer a mortgage or buy your existing mortgage with the intent of forcing you into default. Wrongful foreclosure loans and predatory lending are most likely to happen in cases where a mortgage servicer has purchased a loan or has been assigned to it from another servicer/lender and the correct paperwork has not been transferred to the new servicer. This can happen either through simple error or via deliberate acts done to hurt a consumer.
To prevent a wrongful foreclosure, it is very important to communicate with your lender and to review all of your statements carefully. Naturally, reviewing everything greatly increases your chances of seeing an error. Always take letters from your lender seriously.
If you receive a notice that your mortgage payments are late, do not assume that it has been sent accidentally. Contact your lender immediately. Find out what went wrong, and what you can do. Additionally, speak with an attorney who specializes in mortgages and lending to help find where the discrepancy occurred, in order to ensure things are handled correctly.
If you are served with a foreclosure lawsuit, do not ignore it! There are strict time limitations on protecting yourself in these lawsuits, and you do not want to miss any deadlines when your home is at stake. Take the time to speak with attorney who has experience in handling mortgages and lending, and ensure that you are not wrongfully being foreclosed upon.