Economic Injury in Foreclosure Lawsuits
I have personally spoken to hundreds of homeowners with regard to issues and injustices they have been subject to related to mortgages, mortgage modifications, and foreclosure lawsuits against their homes. However, there is a concept most homeowners do not seem to understand. There is a principle of law which states when you bring a lawsuit you must allege monetary damages. To prove monetary damages you must show there has been an economic injury to you and a certain amount of money is required to redress your grievance for this economic injury (damages). Unfortunately in most foreclosure cases it is extremely difficult for the homeowner to allege economic damages in a countersuit against a financial institution.
Destroying Title To One’s Home
In the counter lawsuits brought by our law firm, we allege there has been economic injury to the homeowner because the financial institution, upon initiating a foreclosure proceeding, filed what is called a lis pendens. A lis pendens is a notice to the world a foreclosure lawsuit has been initiated. The filing of a lis pendens has a negative impact on the title to one’s home. It provides notice to all people interested in any transaction concerning the home that it is involved in a foreclosure lawsuit. Destroying the title to one’s home can be the basis for countersuing the bank for monetary damages.
Fraud
In cases where the bank has engaged in fraudulent activities, has violated truth in lending laws and/or has been involved in predatory lending, there is potential for economic injury the homeowner can recover. Unfortunately the cases do not currently allow a homeowner to set aside a mortgage based on any of those aforementioned theories of recovery. The courts have not granted homeowner’s applications in the past to set aside mortgages and remove the liens from the homeowner’s homes. This is still an avenue which is being pursued by our law office and other law firms defending beleaguered homeowners in foreclosure defense lawsuits brought by financial institutions.
