We will employ the terms "fraud" and "misrepresentation" generally, however you should notice that these phrases may have significantly unique legal definitions in various states. By way of example, many states have statutes that control debt collection strategies which forbid particular sorts of deception and misrepresentations by credit card companies and by collection agencies that could be related to a foreclosure and also a "standard" fraud or misrepresentation suit. Your state could have similar consumer safeguard regulations. As always, should you feel your financial institution has lied or made misstatements to you at any point throughout a foreclosure process; see a legal representative in your state to decide if your particular details will give rise to a offense which could possibly protect against a foreclosure.

What misrepresentations a financial institution can make to a person are too varied to number. In essence, when a financial institution says to you it is going to do something and then does something else, it could be a misrepresentation that leads to a violation. As an example, expressions which could create culpability (depending on the facts) could be:

a) If a mortgage company advises that it isn't going to foreclose on the home on a specified day and thereafter forecloses nonetheless;

b) If your bank provides that the borrower has been approved for a modification or even delivers the borrower with a modification agreement and then fails to modify the mortgage loan; or

c) If your creditor affirms that a payment will be applied to the mortgage loan in a specific way and thereafter utilizes it in a different way.

There could be numerous probable issues in a fraud or misrepresentation claim. Several sorts of misrepresentations might have to be made in writing so that they are binding. Some representations perhaps may not bring about a misrepresentation. An attorney familiar with these sorts of claims in your area is definitely a critical resource for you if a violation has transpired.

Preventing a foreclosure as a result of a misrepresentation regarding a particular foreclosure sale may additionally fail to be a lasting solution. If the bank made a statement that the foreclosure is definitely postponed, yet it is advancing with the foreclosure, a restraining order could avoid that foreclosure, although the creditor would just have to re-post the residence for foreclosure and avoid making any misrepresentations with regards to a future foreclosure. This type of claim might put a stop to the foreclosure, but a follow-up strategy should also be in place to deal with the past due amount. Once again, if you think that your particular bank has made a vital misrepresentation to you before a foreclosure, you need to seek the advice of a legal professional licensed in your state.