A wrongful foreclosure lawsuit settlement typically is the amount a homeowner is owed after they’ve been wrongfully accused of foreclosure fraudulently. This may occur for various reasons such as: The homeowner being delinquent on a mortgage contract. The homeowner not paying rental fees and penalties on time. In some states, the homeowner has fallen behind on their payments for 90 days or more.
When filing for wrongful foreclosure lawsuit settlement, you must first be able to prove that the offending party (the mortgage lender) was aware of the deficiencies in your financial statements. Then, you need proof that the offending party in fact acted responsibly by correcting the underlying financial problem. This proof comes from the lender retaining an attorney. If you’re unable to retain an attorney to represent you, then many local non-profit agencies, like the HUD (U.S. Department of Housing and Urban Development), are able to help with low-cost legal support for low-income families, like yourself.
You must ensure that you understand all of your rights under the law prior to signing a lawsuit agreement. Your rights include: Being notified promptly and fully of your rights to a remedy. Being adequately represented during both the initial lawsuit and any appeal proceedings. Having your mortgage lender prove that they had no knowledge of your foreclosure lawsuit or are powerless to do anything about it.
After filing your lawsuit, you will most likely be assigned an attorney who will guide you through the entire litigation process and advise you on what to expect. You and your attorney will be negotiating the terms of your mortgage repayment. During this time, the mortgage lender will investigate the validity of your lawsuit. They will try to prove that you are legally justified in owning your home.
The investigating process begins at the local courthouse. An appraiser who is an expert in real estate and lien law is assigned to the case to gather information and make a determination as to the value of your home. In most cases, your mortgage lender’s attorney will file paperwork in the county courthouse in which your home is located. The paperwork will request information regarding your homeowners insurance policy, reverse mortgage information, the appraiser’s report, copies of bank records, and other relevant information. Once your paperwork is filed with the court, the mortgage lender will have thirty days to respond, which is the standard time allowed.
If your mortgage lender fails to respond, you and your attorney will be granted an opportunity to appear in court to further argue your claim. If you win the lawsuit, your attorney will receive a judgment in your favor against the mortgage holder. For most homeowners, these outcomes are extremely rare; however, if the odds are against you, your best option may be to hire an experienced foreclosure lawyer to ensure a fair outcome for you.