Foreclosure is the procedure by which a party who has loaned money secured by a mortgage or deed of trust on real property (or has an unpaid judgment), forces the sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, after the debtor fails to make payment.
In most cases, a wrongful foreclosure action alleges that the amount stated as due and owing in the notice of default is incorrect for one or more of the following reasons: an incorrect interest rate adjustment, incorrect tax escrow collected, misapplied payments, or a forbearance agreement which was not adhered to by the servicer, Wrongful foreclosure actions are also brought when the servicers accept partial payments after initiation of the wrongful foreclosure process, then continue with the foreclosure.
Title: Delaware Instruction to Jury Regarding Damages for Wrongful Foreclosure: Understanding the Compensation Process Introduction: A wrongful foreclosure occurs when a lender illegally seizes a property from a borrower. If a case of wrongful foreclosure occurs in Delaware, the court provides specific instructions to the jury regarding the calculation and awarding of damages. This article will delve into the various types of Delaware Instruction to Jury Regarding Damages for Wrongful Foreclosure, providing a detailed description of the compensation process in such cases. 1. Types of Delaware Instructions to Jury Regarding Damages for Wrongful Foreclosure: a. Compensatory Damages: Compensatory damages seek to reimburse the borrower for their financial losses resulting from a wrongful foreclosure. The court instructs the jury to consider factors such as the fair market value of the property, missed rental income, emotional distress, harm to credit score, and attorney fees. b. Punitive Damages: In certain cases, Delaware law allows for the award of punitive damages, which aim to punish the lender for their wrongful actions and deter them from engaging in similar conduct in the future. The court provides guidance to the jury on when punitive damages may be awarded and the factors to consider in determining their amount. c. Restitutionary Damages: In instances of wrongful foreclosure, the court may also instruct the jury to consider awarding restitutionary damages. These damages aim to restore the borrower to the position they were in before the foreclosure, considering any financial harm, inconvenience, or stress caused to them as a result of the wrongful action. 2. Calculation of Damages: a. Property Value: The court instructs the jury to determine the fair market value of the property at the time of wrongful foreclosure, considering evidence such as appraisals, comparable sales, and expert opinions. b. Financial Losses: The jury is guided to calculate any financial losses the borrower incurred, including missed rental income if the property was an investment, costs of relocation or finding new housing, and any related expenses or debts. c. Emotional Distress: Delaware law recognizes that a wrongful foreclosure can cause significant emotional distress. The court instructs the jury to evaluate the borrower's emotional suffering and determine an appropriate compensation amount. d. Punitive Damages Considerations: When punitive damages are applicable, the court guides the jury to consider the severity of the lender's misconduct, their financial situation, and the necessity of deterring future wrongful foreclosures. Conclusion: Understanding Delaware Instruction to Jury Regarding Damages for Wrongful Foreclosure is crucial for both borrowers and legal professionals involved in such cases. In Delaware, the court provides instructions on compensatory, punitive, and restitutionary damages, aiming to provide appropriate compensation to the aggrieved party while discouraging lenders from engaging in wrongful actions. By considering various factors and following the court's instructions, the jury plays a vital role in ensuring justice is served in cases of wrongful foreclosure.
