Owning a home comes with many financial obligations, and, due to a variety of circumstances, some homeowners face impending foreclosure. The mortgage lender is the entity that starts the foreclosure process, all of which is done outside of a courtroom. However, if the lender violates foreclosure laws then the homeowner has the right to litigate. A court case can look to prevent the foreclosure of the property, receive a settlement, or change the date of sale. The options vary based on the case.
How does a lender act illegally? It can vary based on the situation. One possible action is dual tracking. This occurs when the lender tells the homeowner that they are under review for some sort of modification to their mortgage (so that they won’t face foreclosure), but in reality, they are continuing the process for foreclosure. Therefore, the homeowner is falsely made to believe that they will not have to worry about foreclosing on their property. This can create grounds for foreclosure litigation against the lender, as California has banned dual tracking in the Homeowner Bill of Rights.
If the homeowner believes they have a case to sue a lender, they should contact an experienced attorney, like those at the Law Advocates Group, LLP. Based on the violation that transpired, an attorney can help the homeowner determine possible results from a court case. The culmination of the foreclosure litigation process will depend on the violation that occurred, and can possibly end with a cash settlement, homeowner regaining the title of their property, or other damages.