Wrongful Foreclosure

A lender or the lenders' servicing agent that begins foreclosure proceedings must follow very strict rules. Georgia law requires that a notice of the foreclosure sale be provided to the borrower both by advertisement and by certified mail. The notice must be mailed to the borrower at least (30) days from the proposed date of sale and advertised for (4) consecutive weeks in the local newspaper. A lender's failure to provide such notice can result in a wrongful foreclosure for which they are liable.

It is also possible for a Homeowner mortgage borrower to be wrongfully foreclosed upon when he or she has never been late with a single payment. This occurs most often when the mortgage is assigned to servicing company. These servicing companies do not own the mortgage but are simply debt collectors. The service companies are paid a fee to collect payments but rely heavily on late payments and additional fees to supplement their income. These servicing companies frequently fail to provide the borrower with a new mailing address for loan payments, apply loan payments late without notifying the borrower, assess improper fees and force unnecessary insurance upon the borrower. These improper practices cause excessive billing of the Homeowner mortgage borrower. These excessive bills can ultimately cause a mortgage default.

When a wrongful foreclosure occurs, borrowers may be able to bring a claim for the loss of their home, loss of credit, consequential damages, emotional damages, attorney fees and litigation expenses. If you feel that you've been wrongfully foreclosed upon, you do have options. However, they all require you to be knowledgeable about your payments, your loan, and the foreclosure process. Talking to an attorney is also an important step. Without the right knowledge, you will have a difficult time responding to a wrongful foreclosure, whether the foreclosure happens through malice or by mistake.