Proving a Wrongful Foreclosure Claim
Many homeowners in the Dallas/Fort Worth area have had to deal with the stress of having their homes foreclosed on by the banks. While this is a terrible thing to have to work through, it is even more upsetting when the foreclosure process involves illegal actions on behalf of the lender. When a bank instigates foreclosure proceedings under invalid circumstances, whether due to mismanagement or intentional wrong-doing, they could be committing wrongful foreclosure. In some cases, such as those involving a lender’s failure to provide notices or bad faith lending tactics, these foreclosures may be ruled invalid by a judge and homeowners may be able to keep their homes.
Proving Wrongful Foreclosure
When a debtor has evidence that the lender has failed to operate in good faith, he or she has may do either of the following:
- Seek to have the foreclosure dismissed, or
- Sue the lender for damages
In wrongful foreclosure claims, the plaintiff will be responsible for proving his or her case. In order to win compensation for damages caused by a wrongful foreclosure, the debtor must first prove the following:
- That a legal duty was owed to the debtor by the foreclosing lender,
- That that duty was breached in some way,
- That the breach of duty led to damages, and
- What those damages were
Once the above elements of wrongful foreclosure have been proven, the plaintiff will be entitled to recover the difference between the value of the foreclosed upon home and the remaining debt balance if the value is higher than the balance. This recovery will likely be put towards the balance owed so as to minimize the plaintiff’s debt to the lender.
Contact a Dallas/Fort Worth Wrongful Foreclosure Attorney
If you are facing the prospect of an unjustified foreclosure, or if your lender has acted in bad faith, it is in your best interest to seek the advice of a qualified real estate litigation attorney right away. At Gagnon, Peacock & Vereeke, P.C., our Dallas/Fort Worth lawyers have seen a number of clients through this process, from filing a wrongful foreclosure claim to providing evidence and understanding the judge’s ruling. For more information on how we can help you, feel free to contact our Dallas office at (214) 824-1414 today.