A Foreclosure is the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.
Wrongful foreclosure is a civil cause of action based on allegations of foreclosure fraud. Fraud can occur across multiple facets of the foreclosure process, including botched documents, unscrupulous lenders or predatory foreclosure mediators.
To succeed on a claim for wrongful foreclosure under Texas law, a plaintiff must show: (1) a defect in the foreclosure sale; (2) a grossly inadequate selling price; and (3) a causal connection between the defect in the sale and the grossly inadequate selling price.
“A claim for `wrongful foreclosure’ is not available based merely on showing a defect in the foreclosure process; it is also necessary that there be an inadequate selling price resulting from the defect. Texas courts have yet to recognize a claim for `attempted wrongful foreclsoure. Because an inadequate selling price is a necessary element of a wrongful foreclosure action, “a foreclosure sale is a precondition to recovery.”
A plaintiff seeking damages for wrongful foreclosure must show that (1) an irregularity in the foreclosure sale (2) caused the plaintiff damages.” The “correct measure of damages” for wrongful foreclosure is “the difference between the value of the property in question at the date of foreclosure and the remaining balance due on the indebtedness.
Our law firm handles the wrongful foreclosure aspect of these civil cases and we attempt to fight the lenders for wrongfully foreclosing on a man’s castle.
If you have been a victim of a wrongful foreclosure call the Law Offices of Alex R. Hernandez Jr. 888HDZLAW8. We fight to stop fraud against consumers.