Can you sue the bank for wrongful foreclosure?
A lender can be accused of having performed a wrongful foreclosure if they do so without proper legal cause or procedure. It’s reprehensible that a bank or other organization would do faulty or erroneous work, either intentionally or unintentionally, causing a person to lose their home. If you believe you were wrongfully foreclosed on, you may be eager to file a lawsuit. That’s understandable, but make sure you understand the implications of taking legal action against your bank.
Should I sue the bank for wrongful foreclosure?
There is no clear answer to this, as many factors come into play when filing a lawsuit against a bank. Although it is possible to sue the bank for wrongful foreclosure in Maryland, the chances of winning the lawsuit are slim.
However, if you speak with a foreclosure attorney and determine that a lawsuit is your best option, understand the process and the reasons why a lawsuit may be in your best interest. Here are some of the situations that constitute a wrongful foreclosure:
- Incorrect calculations, including adjustments to interest rates and tax accounts
- Failure to provide notices
- Intentional wrongdoing
Another major cause of wrongful foreclosure in Maryland is inaccurate credit practices by lenders. The 1968 Truth in Lending Act (TILA) was designed to protect you from pushy sales tactics and lets you reconsider or back out of the loan process without losing money. When a lender fails to follow state and federal regulations, including TILA, they are violating the law.
This is when the process can become confusing; it’s hard to know exactly which law applies to which situation. If you believe you were wrongly foreclosed upon or are currently in the process of foreclosure and believe the lender caused inaccuracies, contact Coover Law in Howard County, Maryland.
Statute of Limitations
If you wish to pursue legal action against the bank or other lender who foreclosed on your house, you must do so within three years. This deadline is called a statute of limitations, and if you don’t file a lawsuit within that amount of time, you lose your legal right to sue.
The statute of limitations is just one of the many deadlines you have to follow. If you want to file a lawsuit against your bank for wrongful foreclosure, hire a real estate lawyer who can handle all aspects of your case and ensure the proper steps are taken at the right time.
Proving Wrongful Foreclosure
The plaintiff (homeowner) in a wrongful foreclosure case must prove that the defendant (lender) failed to operate in good faith. If you wish to sue the bank for wrongful foreclosure, you must prove the following:
- The lender owed you, the borrower, a legal duty
- The lender breached that duty
- The breach of duty caused your injury or loss (damages)
- What the damages are
Because of the notoriously difficult nature of wrongful foreclosure lawsuits, you will not be able to prove the above without an experienced real estate attorney in Columbia, Maryland.
Compensation for Wrongful Foreclosure
There are several types of compensation that you may be able to recover if you were wrongfully foreclosed on. These include:
- Compensation measured by the loss in value of your property
- Compensation for having a poor credit rating due to the foreclosure
- Compensation for moving somewhere else and finding a different school and neighborhood
- Punitive damages if there is evidence that the lender committed fraud or other harmful conduct in the wrongful foreclosure
- Emotional distress
To recover from the financial and emotional distress of wrongfully losing your house, you need an experienced and relentless real estate attorney who will represent you in court. If you believe your home was wrongfully foreclosed on, contact Coover Law today for a free, no-obligation consultation.