New York Instruction to Jury Regarding Damages for Wrongful Foreclosure

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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.

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FAQ

'The elements of a wrongful foreclosure cause of action are: ?'(1) [T]he trustee or mortgagee caused an illegal, fraudulent, or willfully oppressive sale of real property pursuant to a power of sale in a mortgage or deed of trust; (2) the party attacking the sale (usually but not always the trustor or mortgagor) was ...

The statute of limitations for wrongful foreclosure is at least three years and, possibly longer, if a borrower can invoke the discovery rule or equitable tolling. See Cal. Code of Civ. Proc.

The redemption period may also depend on the type of foreclosure proceedings. For example, in California a homeowner can redeem the foreclosed property within three months to one year if the foreclosure was judicial.

California changed its law at the beginning of the 2023 to require that certain sellers of foreclosed properties containing one to four residential units only accept offers from eligible bidders during the first 30 days after a property is listed.

In California, the statute of limitations for bringing a court foreclosure action to enforce a mechanic's lien is typically 90 days from the date the mechanic's lien was recorded. This time period is established by California Civil Code section 8460.

'The elements of a wrongful foreclosure cause of action are: ?'(1) [T]he trustee or mortgagee caused an illegal, fraudulent, or willfully oppressive sale of real property pursuant to a power of sale in a mortgage or deed of trust; (2) the party attacking the sale (usually but not always the trustor or mortgagor) was ...

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New York Instruction to Jury Regarding Damages for Wrongful Foreclosure