It has unfortunately become an all too common scenario in the US, including Dallas: homeowners receive a notice of foreclosure because they have defaulted on their payments. However, this does not mean that all hope is lost.

Foreclosures usually follow a set of strict rules and regulations, depending on whether the state uses a judicial or non-judicial system. The failure of the lender to follow any of these rules is a common basis for a claim of wrongful foreclosure. While this may not necessarily stop foreclosure, it may at least buy the homeowner some time to find a more permanent solution.

There are also instances when the lender has no proof of standing in the foreclosure. Banks, in particular, have had some trouble with producing documentation that proves they have to right to foreclose, mostly because the loan has been passed around so much during the securitization process. According to the Fair Debt Collection Practices Act, the debtor has a right to demand documentary proof that the lender has the right to foreclose within 30 days of getting a notice of foreclosure.

The laws governing wrongful foreclosure claims differ from state to state. As any reputable Fort Worth real estate litigation lawyer probably knows, a plaintiff under Texas law has to show that there as something wrong with the foreclosure sale, the property sold for a grossly inadequate amount, and that the low selling price was caused by the defect in the sale. This makes it more challenging for the foreclosure defense lawyer in making a case, but it can be done with the right lawyer.

If you are facing foreclosure in Texas, you have your work cut out for you. Consult with a foreclosure defense lawyer in your state to find out if you have grounds to make a wrongful foreclosure claim. There may be laws that can provide you with temporary relief until you can figure something else out.