Wrongful foreclosure occurs when a lender or servicer forecloses in violation of law. Grounds include: procedural defects (improper notice, defective NOD, wrong trustee), statutory violations (RESPA dual tracking, TILA disclosure failures, SCRA violations without court order), breach of contract (violating deed of trust terms), and fraud/misrepresentation. Remedies include: setting aside the sale, recovering the property, actual damages, emotional distress damages, punitive damages, and attorney fees. At Dream Financial Management, we evaluate wrongful foreclosure claims nationwide since 1994.
Many states require you to "tender" the full loan balance to challenge a foreclosure — a harsh rule. However, exceptions exist: if the sale is void (not just voidable), tender may not be required. Statutes of limitations are short: 1-3 years in most states. If you suspect wrongful foreclosure, act immediately. Delay can waive your claims.
Defective Notice of Default (wrong amount, wrong address), Notice of Sale errors, improper trustee substitution, failure to mail required notices, recording errors, and violation of state-specific foreclosure statutes. These can render the sale void.
Dual tracking, failure to evaluate loss mitigation, failure to provide denial notice with appeal rights, inaccurate loan disclosures. These federal violations are independent claims that survive foreclosure.
Foreclosure without court order on active-duty servicemember. The SCRA makes the sale void — the strongest wrongful foreclosure claim. $55,000+ civil penalties available.
Dream Financial Management evaluates foreclosure sales for defects and pursues wrongful foreclosure claims nationwide. Since 1994. Free consultation.