Q:

How do you file a lawsuit for a wrongful foreclosure?

A:

Quick Answer

To file a lawsuit for wrongful foreclosure, contact a consumer attorney, advises CBS News. Absent a personal reference for such a lawyer, a useful place to find consumer attorneys is with the National Association of Consumer Advocates and the National Association of Consumer Bankruptcy Attorneys. It is helpful if the lawyer has won other mortgage servicing, securitization and foreclosures cases.

Continue Reading
How do you file a lawsuit for a wrongful foreclosure?
Credit: PhotoAlto/Eric Audras PhotoAlto Agency RF Collections Getty Images

Full Answer

Borrowers file wrongful disclosure actions against the financial lender and the service provider, states LawFirms. A borrower can also file a lawsuit against a trustee if it is a nonjudicial foreclosure. The borrower can accuse the opposing parties of fraudulent, illegal or oppressive sale of the property and also seek punitive damages for emotional distress.

Wrongful foreclosure lawsuits can take 10 to 24 months to resolve, explains LawFirms. At any point preceding the foreclosure sale, a borrower can appeal for an injunction in hopes of preventing the foreclosure sale until the lawsuit is addressed. Typically, these are granted in situations where a borrower is apt to face irreparable harm or the borrower is authorized to an injunction.

Potential damages available include reimbursement for the hardship caused, which is determined by the value of the property, emotional distress and punitive damages, states LawFirms. If the borrower wins the lawsuit, the foreclosure sale is terminated, and the provider must pay legal bills for the borrower.

Learn more about Law

Related Questions

Explore