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.
Puerto Rico Instruction to Jury Regarding Damages for Wrongful Foreclosure is a set of guidelines provided to juries in Puerto Rico during a wrongful foreclosure trial. The purpose of these instructions is to inform the jury about the various factors they should consider when determining the appropriate amount of damages to be awarded to the aggrieved party. The instructions outline the legal framework and principles surrounding wrongful foreclosure in Puerto Rico. They discuss that wrongful foreclosure occurs when a lender or mortgagee improperly initiates foreclosure proceedings, resulting in financial harm and distress to the homeowner or mortgagor. The jury is provided with an overview of the types of damages that may be awarded in a wrongful foreclosure case, including: 1. Compensatory Damages: These damages aim to compensate the aggrieved party for their actual financial losses as a result of the wrongful foreclosure. The jury will assess factors such as the amount of equity lost, the value of the property at the time of foreclosure, any repair or maintenance costs incurred, and other related financial burdens caused by the foreclosure. 2. Emotional Distress Damages: In cases where the wrongful foreclosure has caused significant emotional distress or trauma to the homeowner, the jury may consider awarding damages to compensate for the mental anguish, anxiety, humiliation, or other psychological suffering experienced. 3. Punitive Damages: In certain circumstances where the lender's conduct is deemed particularly reckless, malicious, or fraudulent, the jury may consider awarding punitive damages. These damages aim to punish the lender and deter similar behavior in the future. The instructions also guide the jury on the calculation of damages, instructing them to review evidence presented during the trial, such as financial statements, property appraisals, expert testimonies, and any other relevant documentation. They are advised to consider the impact of the wrongful foreclosure on the homeowner's financial stability, emotional well-being, creditworthiness, and overall quality of life. It is important to note that the specific types and methods of calculating damages may vary slightly depending on the particular laws, regulations, and court precedents in Puerto Rico. Therefore, individuals involved in a wrongful foreclosure case in Puerto Rico should consult with legal professionals familiar with the local jurisdiction to ensure accurate understanding and application of the instructions.
