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Wrongful Foreclosure cases are fact-specific and may be based on the lack of standing to foreclose due to a void assignment of the deed of trust, mistakes on the recorded documents attributable to fraud or negligence, or statutory violations pursuant to new foreclosure statutes put in place after the first mortgage ...
The foreclosure process derives its legal basis from a mortgage or deed of trust contract, which gives the lender the right to use a property as collateral in case the borrower fails to uphold the terms of the mortgage document.
In Texas, to have grounds for a wrongful foreclosure case, your attorney must typically prove one of these two things: That there was a defect in the foreclosure sale process. Maybe the lender failed to give you proper notice about the pending sale. Maybe you were on active duty or deployed with the US Military.
For a court to stop a foreclosure, the homeowner must file a lawsuit and request a temporary restraining order, or TRO. Often, homeowners believe that they can stop a wrongful foreclosure without filing a suit.