California Residents Can File Wrongful Foreclosure Suits

by San Antonio Attorney

A case involving a California Supreme Court ruling has opened up the option that people affected in this case can file a ‘wrongful foreclosure’ lawsuit.  This lawsuit can entitle them to claim financial damages but reclaiming their homes is not an assurance, since these have been purchased and occupied by other people.

The transfer of title focuses on this issue.  For instance, the homeowner has initially purchased a property for that cost $500,000, this was done by signing a note and promised to repay.  Unfortunately, the mortgage company went into bankruptcy and placed the dissolved assets as trust fund.  Years later, the deed was created for Deutsche Bank.  This new trust has a closing date, a period which a new asset can’t be accepted.  The date has a backlog of four years behind, making the deed transfer functionally impossible.

Five years have passed and another trustee has fulfilled the sale.  The disadvantage of this convoluted process is the conflict that the transferring process of the deed was declared null and void.

The example of this ruling may not apply in some situations but it will set a standard.  As the Supreme Court ceded that when someone signs a loan agreement, commitment to pay is expected.  Repayment is held liable to the party that is legally holding the loan and if nobody holds the loan this will be declared null.  If the official transfers are not done properly, debt obligation is not exerted by the company and even foreclosure proceedings.

Statute of Limitations in California stipulates that there is no eligibility for redress since the foreclosures are already old.  For the qualified ones, the court entails a multitude of cases, which served as a basis for combating wrongful foreclosures that can happen in other states.

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