It is possible to have a lender or loan servicer initiate foreclosure on your property when you have done nothing wrong. An error can be made by the lender, which puts your loan into default, although you pay your mortgage payments in full and on time.
A wrongful foreclosure can also be caused when a mortgage servicer (the company hired by the lender to collect the mortgage payment) or a new owner of your mortgage loan does not understand the details of your loan. Payments can be misapplied, incorrect interest rates can be charged and communication to the borrower can be inaccurate. Unfortunately, it is possible for a loan to be placed in the foreclosure process in error and the borrower may not even know a foreclosure has been initiated.
If the borrower believes an error was made, and the lender does not agree and moves toward foreclosure proceedings, the borrower has the right to claim the foreclosure is wrong or something has been done incorrectly in the implementation of the foreclosure. The borrower can use the courts to demand the foreclosure proceedings be stopped.
