We will apply the terms "fraud" and "misrepresentation" commonly, nonetheless be sure to be aware that these terms may have widely distinct legal meanings in different states.
By way of example, some states have regulations that control debt collection measures that prohibit some kinds of scams and misrepresentations by banking institutions and by debt collectors which are often related to a foreclosure as well as a "common" fraud or misrepresentation lawsuit.
Your state might have comparable consumer safeguard laws.
Of course, should you feel your mortgage provider has lied or made misstatements to you at any point within the foreclosure phase; check out a lawyer in your state to discover if your precise issue will give rise to a violation that could possibly avert a foreclosure.
Just what misrepresentations a lender can make to a homeowner are too diverse to number.
In essence, whenever a creditor claims it's going to do something and after which does something else, it could possibly be a misrepresentation giving rise to a violation.
As an example, representations that may bring about responsibility (dependent upon the facts) are: a) When a lender represents that it isn't going to foreclose on the house on a given day and subsequently forecloses nonetheless; b) Where a mortgage company provides that the person has been accepted for a modification or possibly supplies the debtor with a modification agreement and thereafter fails to modify the loan; or c) When a mortgage company affirms that a payment is going to be put on the mortgage in a particular way and then utilizes it in a different way.
There could be lots of potential problems in a fraud or misrepresentation case.
Several sorts of misrepresentations might have to be made on paper in order to be binding.
Some representations may not lead to a misrepresentation.
A legal professional experienced with these particular claims in your area is surely an vital source of information to you if a violation has occurred.
Avoiding a foreclosure as a result of a misrepresentation concerning a certain foreclosure sale may also fail to turn into a continuing alternative.
If the lender made a statement that the foreclosure would be postponed, however it is advancing with the foreclosure, a restraining order could avoid that foreclosure, though the creditor would just be required to re-post the residence for foreclosure and refrain from making any misrepresentations about a future foreclosure.
This kind of suit may stop the foreclosure, but a follow-up strategy needs to be available to deal with the arrearage.
Once more, if you believe that your particular creditor has made an express misrepresentation to you prior to a foreclosure, be sure to seek the advice of an attorney licensed in your area.