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BIRMINGHAM, AL WRONGFUL FORECLOSURES ATTORNEY
All this time you have been paying your mortgage like you always do, then suddenly you realize your home or property is being foreclosed on out of nowhere. This can be a nightmare for any borrower and can cripple your credit score rating. You may wonder how this happened and how you’re going to get out of this mess before any more damage is done.
It is possible to have a lender or loan servicer initiate foreclosure on your property when you have done nothing wrong. Usually, this happens due to a miscommunication between the lender and borrower or the servicer of the loan. An error can be made by the lender/servicer, which puts your loan into default, although you pay your mortgage payments in full and on time. A loan can potentially be placed in the foreclosure process in error, and the borrower may not even know a foreclosure has been initiated. A wrongful foreclosure can also be caused when a mortgage servicer (the company hired by the lender to collect the mortgage payment) or a new owner of your mortgage loan does not understand the details of your loan.
Though there are several reasons why wrongful foreclosures can occur, these are some of the more common reasons:
- Payments can be misapplied
- Incorrect interest rates can be charged and communication to the borrower can be inaccurate
- Misapplied payments
- There may be a quiet title which is a lawsuit regarding property disputes
- Breach of contract
- Improper accounting for chapter 11 or chapter 13 bankruptcy
- Unfair business practices
Lenders or loan servicers must have a legitimate legal cause to initiate the foreclosure process against the borrower, and they must take the appropriate and proper steps during the foreclosure process. If the borrower believes an error was made, and the lender does not agree and moves toward foreclosure proceedings, the borrower has the right to claim the foreclosure is wrong or something has been done incorrectly in the implementation of the foreclosure. The borrower can use the courts to demand the foreclosure proceedings be stopped. The borrower may also demand the lender/servicer provide specific information under the Real Estate Settlement Procedures Act – RESPA.
If you feel you have been wrongfully foreclosed on in Alabama, contact us now for a free initial consultation and case evaluation by calling the Birmingham personal injury law firm of Lewis & Feldman, LLC locally at 205-254-6060, toll-free at 888-295-7409 or complete our contact form. You can also email us at jon@LewisAndFeldman.com and dfeldman@LewisAndFeldman.com. Our Birmingham based law firm may be able to help you resolve your wrongful foreclosure case. We’re the wrongful foreclosure lawyers serving Birmingham, Bessemer, Hoover and the state of Alabama who can help you receive the justice you deserve.