The financial climate in the U.S. market during the last couple of years of has been quite unstable. As a result, many struggle with financial issues that prove to be harder and harder to bear. It is a well-known fact that there are millions of Americans that are currently in debt and are fighting to make sure they are able to meet their payments. One common problem faced by most people all over the nation is the looming threat that they might lose their homes because of failure to repay their mortgage. In the United States, the reality is that a growing number of people are experiencing foreclosure. Their creditors or lenders then attempt to recover their loans by forcing real property on sale.
What happens when these people’s properties are wrongfully foreclosed? Based on data from the Office of the Comptroller of Currency or OCC, around 1/3 of all people that have had their homes or properties foreclosed faced such action simply because of errors made by banks and mortgage companies. In some cases, foreclosures are also pursued by creditors through fraudulent means. While these cases don’t typically happen frequently, the figure from the OCC show that negligent errors and actions made in bad faith are common enough to be a cause for concern.
According to the website of Gagnon, Peacock & Vereeke, P.C. there are several specific scenarios of wrongful foreclosure. The following situations exhibit fraudulent and negligent practices that could leave homeowners vulnerable to devastating outcomes. The first scenario is when the bank or mortgage company fails to provide the borrower with appropriate notices regarding late or missed payments. Another scenario is when lenders start asking for additional fees for late payments. Instances of predatory lending and lender bad faith also render a foreclosure illegal.Read More