Understanding Wrongful Foreclosure in California
In California, wrongful foreclosure is a serious legal issue where a lender incorrectly takes possession of a property through foreclosure. Navigating the complexities of wrongful foreclosure involves understanding specific legal requirements and concepts.
What is Wrongful Foreclosure?
Wrongful foreclosure occurs when a lender, trustee, or mortgage servicer uses erroneous or illegal methods to foreclose on a property. This can significantly harm homeowners who lose their properties without the proper legal grounds.
Elements to Prove Wrongful Foreclosure
To establish a wrongful foreclosure case, the plaintiff (the person claiming wrongful foreclosure) must prove the following elements:
1. **Foreclosure Sale**: The plaintiff must show that the defendant caused a foreclosure sale of their property under a power of sale from a mortgage or deed of trust.
2. **Wrongfulness of Sale**: There must be proof that the sale was wrongful. This can include reasons such as the sale being illegal, fraudulent, or oppressive.
3. **Tender Requirement**: The plaintiff must demonstrate that they either:
- Tendered (offered) all amounts due under the loan secured by the mortgage, but the defendant refused the payment, or
- Were excused from making such a tender.
4. **Material Breach**: The plaintiff often must show they were not materially in default of any other condition of the loan agreement that would justify the foreclosure. However, it is worth noting that some courts do not require this element.
5. **Harm**: The plaintiff must establish that they were harmed by the foreclosure, which could include losing their home or suffering financial damage.
6. **Causation**: Finally, it must be proven that the actions taken by the defendant were a significant factor in causing this harm.
Real-World Implications
Imagine a homeowner, Mary, who fell behind on her mortgage payments due to sudden medical expenses. When her lender initiated foreclosure, it wasn't because she failed to make payments but because they mishandled her loan restructured agreement. If Mary can prove that the charges against her were unfounded, she may have a legitimate claim for wrongful foreclosure.
Navigating these legal waters can be daunting. Legal advice from a proficient lawyer familiar with California’s foreclosure laws can provide invaluable guidance.
Contact Goldfaden Benson
If you have questions about wrongful foreclosure or are facing potential foreclosure, contact Goldfaden Benson today. Our experienced team is here to help you navigate these challenging circumstances. To learn more about our services, visit our practice areas page or reach out through our contact page for a consultation. Your home and peace of mind are worth protecting.
