Texas 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

You have the right to challenge a foreclosure if you think your lender made a mistake or has violated the law. A notice of preforeclosure does not mean you need to vacate the home.

Ways to Stop Foreclosure in Florida Declare Bankruptcy. Yes, bankruptcy is a way through which foreclosure can be stopped. ... Applying for Loan Modification. ... Reinstating Your Loan. ... Plan for Repayment. ... Refinancing. ... Sell Out Your Home. ... Short Sale. ... Deed In Lieu of Foreclosure.

The common affirmative defenses are fraud, undue influence, lack of notice required under the mortgage, standing, payment, and duress. However, there are others including, incorrect legal description in the mortgage (there is case law here), estoppel, unclean hands, and rescission.

You'll get a copy of the foreclosure judgment from the court by mail. In most cases, the judgment will state that your right to redeem ends when the clerk files the certificate of sale. You won't get an opportunity to get your house back after this time.

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.

Damages available to a borrower in a wrongful foreclosure action include compensation for the detriment caused, which are measured by the value of the property, emotional distress, and punitive damage- if there is evidence that the servicer or trustee committed fraud, oppression or malice in its wrongful conduct.

There are many reasons that foreclosure can be considered wrongful: Continuing foreclosure even though the person is in the middle of bankruptcy. Applying an incorrect amount of interest. Receiving and accepting partial payment and continuing with the foreclosure.

Texas homeowners Most foreclosures are non-judicial types. This means court approval isn't required and speeds up the process. Many Texas foreclosures take 160 days. This is much faster than the national average of 922 days in foreclosure for the second quarter of 2021.

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Texas Instruction to Jury Regarding Damages for Wrongful Foreclosure