Wrongful Foreclosure

A wrongful foreclosure action typically occurs when the lender starts a non judicial foreclosure action when it simply has no legal cause or no standing to do so.

The borrower is the one that files a wrongful disclosure action with the court against the service provider, the holder of the note and if it is a non-judicial foreclosure, against the trustee complaining that there was an illegal, fraudulent or willfully oppressive sale of property under a power of sale contained in a mortgage or deed or court judicial proceeding. The borrower can also allege emotional distress in a wrongful foreclosure action.