Wrongful Foreclosure in Texas
Posted by Aubrey at September 6th, 2014
Foreclosure has unfortunately become a current occurrence of late in the US, and in many cases there is nothing that the homeowner can do. However, it is possible to buy some time to put things to right if the lender fails to follow the strict guidelines for a foreclosure to be considered legitimate in the state of Texas. There are several ways in which a foreclosure can be considered wrongful.
Failing to send a notice of default
In Texas, this has to be given at least 20 days before foreclosure proceedings commence if the property is the principal residence of the debtor. It should state accurate information
Failing to send a notice of acceleration
An Intent to Accelerate is the demand for the entire balance of the debt to be paid immediate and must be posted at the courthouse of the county where the property is located, where the sale will be conducted on the first Tuesday of each month. It also needs to be accurate.
Accepting payments while the foreclosure is proceeding
When a lender agrees to accept payments on a property in default, there is an implied forbearance which means that the foreclosure process should be halted to enable the property owner to catch up on payments.
Enforcing a defective Deed of Trust
A home loan in Texas is covered by a document called a Deed of Trust. Dallas real estate litigation lawyers will be able to spot if there is some error or defect in the document that would constitute wrongful foreclosure.
The debtor is not in default
It has happened that the payments made by the property owner were credited to the wrong account, putting the owner in default. It is important that all receipts are kept to prove that payments have been made.
When the debtor can prove that a wrongful foreclosure has been carried out, the law allows a suit to be filed in county court that has jurisdiction over the property to halt foreclosure such as Dallas County. However, it is not an easy matter and should only be handled by a lawyer experienced in handling such cases in Dallas, TX, for example.
Category: Real Estate