How Do You Calculate Damages on a Wrongful Foreclosure

Do you ever get calls from your lender or a trustee offering to help you in the event that you are a victim of a wrongful foreclosure? If so, do you know how do you calculate damages? It is always best to have an attorney who knows what they are doing representing you. But what if you are unable to hire one?

In order to figure out how do you calculate damages for wrongful foreclosure, you need to understand the process that goes with it. There are three main parties that are involved here. You the homeowner, the bank, and the lending company. The homeowner is the person who owes them money, while the bank and the lending company are the people who own the property.

Process of Wrongful Foreclosure

First, the homeowner must find a way to pay off his debt. If you can not do this, you may have to sell your home and potentially lose your home. This is where the second part comes in. The lender may come in and offer to refinance your mortgage or reschedule your loan in order to make it easier for you to pay off your debt.

The third party then comes in. This would be the lending company. If the lender does not agree to reschedule your loan, you must pay it off. To do this, you must file a lawsuit against the lender. You must provide proof that you owe them money, and that you are in financial distress.

Once you have these documents in hand, you must prepare and submit them to the court. The court will hold an initial hearing on the matter. At this time, they will determine how much you must pay the mortgage company. At this point, you must pay off the full amount, or your case may be delayed.

In many states, the lender may also have to buy back your property at auction if they cannot settle with you. The amount they pay you depends on how much the courts can afford. You may have to pay as little as nothing at all. The lender may also be required to reinstate your mortgage after the foreclosure sale. The final decision of the court will be based on what is referred to as an award of damages

What to Know about Damage of a Wrongful Foreclosure

Now, there is one exception to this general principle. Damages awarded in mortgage foreclosure cases are only for those damages actually caused by the foreclosure itself. There are various theories that allow courts to add additional damages to compensate homeowners for loss, pain and suffering, and other types of emotional distress that usually occur after losing a home to foreclosure.

 These additional damages should be calculated on an income or cost-of-living scale as opposed to the basis of the actual value of the home. (This is why it is usually best to retain an expert to represent your interests in this area of the litigation process.)

As a reminder, however, your goal in seeking damages in a wrongful foreclosure case is not to simply recoup past expenses and losses. You must also make sure that you fully understand any loan documentation that was submitted by the lender when you obtained the loan, as well as any and all mortgage documents related to the loan. Once you've done that, you can figure out how do you calculate damages for a wrongful foreclosure suit.

What to Expect From a Wrongful Foreclosure Attorney

Victims of wrongful foreclosure often seek the services of a wrongful foreclosure attorney. As a matter of fact, there are basically two kinds of claims available on a wrongful foreclosure lawsuit. A plaintiff can be entitled to: 

1. Receive the default foreclosure relief requested by the debtor

2. Be awarded a lawsuit loan and fees based on the value of the request.

Homeowners who find themselves struggling financially due to the illegal trash-out of their homes may also be able to gain a measure of legal relief through a civil action. Homeowners who do not hire an ethical attorney may find themselves at risk for punitive damages. Punitive damages refer to damage that is ordered to be paid by the defendant (bank or lender) in order to deter the same behavior in the future. While many homeowners who are victims of abusive lending practices may not face punitive damages, the homeowners who do may recover significant sums through civil action. An attorney is a right person to calculate damages on a wrongful foreclosure.