The possibility of foreclosure can be terrifying for any homeowner. However, there are situations where the lender may carry out the process incorrectly or without proper legal grounds.
Unaddressed errors or mistakes
Lenders might calculate your interest rate wrong or put your payments in the wrong place. They may also confuse your address with someone else’s or mix up people with similar names. If the lender refuses to acknowledge and correct clear mistakes that are leading to foreclosure proceedings against you or your property, you may need to consult with an attorney.
Skipping steps and procedures
Lenders must provide specific notices before they can foreclose on a property in Texas. This includes:
- Notice of default: This is the first formal warning that you’re behind on your mortgage payments. The lender must send this at least 20 days before they can take further action. If you can pay all past due amounts within this period, the lender must stop the foreclosure process.
- Notice of sale: If you haven’t resolved the default, the lender must then provide a notice of sale. This tells you when and where they will sell your home. They must send this at least 21 days before the sale date.
These notices are crucial because they give you a chance to either catch up on payments or explore other options to avoid foreclosure. If the lender skips crucial steps or doesn’t give you the time to respond, you may have grounds to seek legal action.
Violating agreements, laws or regulations
These violations can include:
- Failing to honor the terms of a modified loan agreement they’ve made with a homeowner
- Pursuing foreclosure while simultaneously considering a loan modification request, also known as dual tracking
- Failing to provide special protections to active-duty military personnel
If you believe your lender has committed any of these violations, it’s crucial to take prompt action.
Understand your rights and options
Your home is one of your most valuable assets. If you’re facing what you believe to be wrongful foreclosure, talk to an attorney who can help you explore all possible avenues to save your property.
