A foreclosure occurs when a person has failed to pay his mortgage properly and the lender has seized the property as its own so it can sell it and acquire the proceeds to offset the mortgage payments the person has failed to give.

A wrongful foreclosure happens when this process has been done improperly or undeservedly. According to the website of Gagnon, Peacock & Vereeke, P.C., those who have been victims of wrongful foreclosure may have legal options. But who are these victims, exactly? Below are some of the most common victims of wrongful foreclosure:

·       Homeowners who were foreclosed even if they were not in default

·       Loaners who were foreclosed because of loaning errors, such as getting denied of loan coverage due to lender’s mistakes or being victims of wrong loan modifications

·       Military members who were foreclosed, even though they are protected from foreclosure by federal law

·       Homeowners with legitimate foreclosure cases, but the foreclosure process has been done incorrectly, usually in the aspects of notices, judicial sale procedures, and evictions

Many times, banks are the real culprits behind wrongful foreclosure. After all, they provide financial assistance to homeowners not for the homeowners’ wellbeing, but for the banks’ financial gain, in the form of interests and possibility of reacquiring assets if the homeowners have failed to pay mortgage.

Because of the banks’ hunger to gain money, they have a tendency to foreclose more than what is necessary, resulting into wrongful foreclosure cases. Even if they earn money out of them, they end up destroying the lives of their victims.

Victims lose the comfort and security of having a home – a house for that matter. They may experience emotional and psychological problems because of that. It should also not be overlooked that a foreclosure can damage their credit rating. It is even worse if the foreclosure has been done wrongly, because it means that they do not deserve the credit rating damage they have sustained.


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