What is wrongful foreclosure?

Wrongful foreclosure occurs when a lender or servicer violates state or federal law during the foreclosure process — dual tracking, robo-signing, failing to provide required notices, foreclosing without proper standing, or foreclosing in violation of bankruptcy stays or SCRA protections. These violations can give rise to claims for damages and injunctive relief.

What damages can I recover?

Depending on the violations, you may recover actual damages (lost equity, relocation costs, emotional distress), statutory damages under TILA or RESPA, punitive damages for egregious conduct, and attorney's fees. In some cases, courts can void the foreclosure sale entirely and restore your ownership.

How do I know if my foreclosure was wrongful?

Warning signs include: foreclosure while a modification application was pending, sale despite a bankruptcy filing, missing or conflicting notices, foreclosing entity names that don't match your original lender, sale dates rescheduled without proper notice, or foreclosure by a party you've never heard of. Our free case review identifies all potential violations.

Is there a time limit for wrongful foreclosure claims?

Yes, statutes of limitations vary by state and by the type of claim, typically ranging from 1-6 years. Some claims start running from the date of the violation, others from when you discovered it. This is why it's critical to have your case evaluated promptly — waiting can bar your claims permanently.

Wrongful Foreclosure

When Lenders Violate the Law, We Fight Back

Wrongful foreclosure claims arise when lenders or servicers violate state or federal laws during the foreclosure process. We pursue damages, injunctions, and accountability.

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When Foreclosure Crosses the Line

Foreclosure is governed by a complex web of federal and state laws, regulations, and procedural requirements. When lenders or mortgage servicers violate these rules — whether through negligence, systemic shortcuts, or deliberate misconduct — homeowners have legal recourse. Wrongful foreclosure claims allow you to hold lenders accountable, stop improper sales, and recover damages for the harm caused.

The foreclosure crisis revealed widespread patterns of misconduct across the mortgage servicing industry: robo-signed documents, fabricated assignments, dual tracking, failure to honor modification agreements, and foreclosure despite active bankruptcy stays. Regulatory settlements have confirmed these practices, and courts have repeatedly held lenders accountable.

If your foreclosure involved any of these violations, you may have claims for wrongful foreclosure — and we can help you pursue them. Whether you're still in the home or the sale has already occurred, available remedies range from stopping the foreclosure to recovering damages, and in some cases, voiding the sale entirely. Read our foreclosure prevention guides to understand the full landscape of your rights under federal and state law.

Common Wrongful Foreclosure Claims

These are the violations we most frequently identify and pursue in wrongful foreclosure cases.

Dual Tracking

Simultaneously pursuing foreclosure while a complete loan modification application is under review — expressly prohibited by CFPB regulations. If this happened to you, you have a strong claim.

Missing Assignment Chain

Foreclosure by an entity that cannot prove it holds the note or has proper assignment. Broken chains of title, MERS discrepancies, and backdated assignments frequently undermine the foreclosing party's standing.

Robo-Signing & False Affidavits

Documents signed without personal knowledge, by unauthorized signers, or in assembly-line fashion without review. Multiple major servicers have admitted to this practice and paid billions in settlements.

Servicemembers Civil Relief Act (SCRA)

Foreclosure of active-duty military members without the court orders and protections required by the SCRA. This is one of the most serious violations a lender can commit.

Notice & Procedural Violations

Failure to provide legally required notices at each stage — breach letters, notice of acceleration, notice of default, and notice of sale. Missing or defective notices can invalidate the foreclosure.

Statute of Limitations

Foreclosure initiated after the state's statute of limitations on the debt has expired. In many states, if too much time has passed since the last payment or acceleration, foreclosure is time-barred.

Bankruptcy Stay Violations

Foreclosure continued or completed despite an active bankruptcy automatic stay. Violations of the stay can result in sanctions against the lender and damages to you.

Modification Agreement Breach

Lender agreed to a loan modification or trial payment plan, then foreclosed anyway despite your compliance. This is both a wrongful foreclosure claim and a breach of contract.

What We Can Recover

Wrongful foreclosure claims can produce meaningful remedies — financial compensation, injunctive relief, and in some cases, reversal of the foreclosure itself.

Actual Damages

Compensation for lost home equity, moving and relocation costs, increased housing expenses, damage to credit, and emotional distress caused by the wrongful foreclosure.

Statutory Damages

TILA provides statutory damages of up to $4,000 per violation for certain disclosure errors. RESPA and state consumer protection laws may provide additional statutory remedies.

Punitive Damages

For egregious or intentional misconduct — robo-signing schemes, deliberate SCRA violations, or fraudulent documentation practices — courts may award punitive damages.

Injunctive Relief

Court orders stopping the foreclosure process, canceling scheduled sales, or restoring possession of the property pending the outcome of your claims.

Sale Set-Aside

In cases of serious procedural defects or fraud, courts have the power to void a completed foreclosure sale and restore your ownership interest in the property.

Attorney's Fees & Costs

Many consumer protection statutes allow prevailing homeowners to recover their attorney's fees and costs, making it possible to pursue claims without out-of-pocket legal expenses.

Frequently Asked Questions

Common questions about wrongful foreclosure claims and your legal rights. Browse our complete FAQ for broader foreclosure defense topics.

A foreclosure is wrongful when the lender or servicer violates state or federal law in the process. This includes: dual tracking (foreclosing while a complete modification application is pending), foreclosing without legal standing (broken chain of title), using robo-signed or fraudulent documents, violating the automatic stay in bankruptcy, foreclosing on active-duty military in violation of the SCRA, failing to provide required notices, breach of a modification agreement, or foreclosing after the statute of limitations has expired.

Yes. While the remedies differ, you can still pursue claims after a sale. You may recover damages for lost equity, relocation costs, and emotional distress, and in cases of serious violations, courts can set aside the sale and restore ownership. The sooner you act after discovering the violation, the stronger your position — there are statutes of limitations that vary by claim type and state.

Remedies depend on the specific violations and your state's laws, but may include: actual damages (lost equity, relocation, credit damage), statutory damages (TILA up to $4,000 per violation, RESPA actual damages plus additional amounts for pattern/practice violations), punitive damages for egregious conduct, and in appropriate cases, voiding the sale and restoring your ownership. Courts can also award attorney's fees, making it possible to pursue claims without upfront legal costs.

Dual tracking is the most common wrongful foreclosure violation. The signs: you submitted a complete modification application, received no decision (or a vague 'application incomplete' notice), and the foreclosure continued on a parallel track including a scheduled sale. If you submitted financial documents to your servicer for modification review and the foreclosure continued without a clear written denial that gave appeal rights, dual tracking likely occurred.

Statutes of limitations vary by the type of claim and your state. TILA rescission claims: up to 3 years. RESPA claims: 3 years for most violations. State wrongful foreclosure claims: typically 1-6 years depending on the state, with some running from the date you discovered (or reasonably should have discovered) the violation. This is why prompt evaluation is essential — delay can permanently bar your claims.

Related Services

Wrongful foreclosure claims are strongest when supported by these complementary services.