How To Prove A California Wrongful Foreclosure Claim

In California, a claim of Wrongful Foreclosure is defined as:
Wrongful foreclosure is an action for damages resulting from the improper sale of a house in foreclosure or an action to set aside a foreclosure sale.
It simply means:
A homeowner can sue to stop the improper sale of his or her house or can get damages if the house is sold.
There are 6 elements of the claim:
- Element 1. The defendant caused a foreclosure sale of the plaintiff’s home or other real property under a power of sale in a mortgage deed of trust. The defendant forced the sale of the plaintiff’s home or property because of a mortgage agreement, which allowed them to do so, even though the plaintiff believes this action was unjust or improper.
Facts that might support this element look like:
* The defendant initiated the foreclosure process by sending a notice of default to the plaintiff, indicating that the mortgage payments were overdue.
* The defendant conducted a foreclosure sale of the plaintiff’s property without providing the required notice as stipulated in the mortgage deed of trust.
* The defendant failed to accept the plaintiff’s valid payment made prior to the foreclosure sale, leading to the wrongful sale of the property.
* The defendant did not have the legal authority to foreclose on the property, as the mortgage was not in default at the time of the sale.
* The defendant’s actions directly resulted in the loss of the plaintiff’s home through a foreclosure sale conducted under a power of sale clause. - Element 2. That this sale was wrongful. A wrongful foreclosure claim argues that the sale of a property was illegal or improper, often because the lender did not follow the correct legal procedures, failed to provide proper notice, or had no right to foreclose on the property in the first place.
Facts that might support this element look like:
* The property was sold at a foreclosure auction without proper notice to the homeowner, violating statutory requirements.
* The lender failed to provide the homeowner with an opportunity to cure the default before proceeding with the foreclosure sale.
* The sale price at the auction was significantly below the property’s fair market value, indicating a lack of good faith in the sale process.
* The foreclosure was initiated based on inaccurate information regarding the homeowner’s payment history, leading to an unjust sale.
* The lender did not follow the required legal procedures for foreclosure, rendering the sale invalid and wrongful. - Element 3. The plaintiff tendered all amounts that were due under the loan secured by the mortgage or deed of trust, but the defendant refused the tender, was excused from tendering all amounts that were due under loan secured by the mortgage or deed of trust. The borrower offered to pay back everything owed on their mortgage, but the lender refused to accept the payment, which means the borrower is not required to pay again to challenge the wrongful foreclosure.
Facts that might support this element look like:
* The plaintiff made multiple attempts to pay the outstanding amounts due under the loan, providing evidence of these payments in the form of bank statements and receipts.
* The defendant acknowledged receipt of the plaintiff’s payment offers but refused to accept them without providing a valid reason.
* The plaintiff was informed by the defendant that the loan was in good standing, leading them to believe that no further payments were necessary.
* The defendant’s refusal to accept the tender was based on an alleged default that the plaintiff had already rectified prior to the foreclosure proceedings.
* The plaintiff was advised by a third-party mediator that their payments were sufficient to satisfy the loan obligations, further supporting their claim of tender. - Element 4. The plaintiff was not materially in breach of any other condition and had not failed to perform any other material requirement of the loan agreement that would otherwise justify the foreclosure. The borrower did not significantly break any important rules of the loan agreement and had not failed to meet any major obligations that would allow the lender to take their property through foreclosure.
Facts that might support this element look like:
* The plaintiff made all required monthly payments on time and in full, demonstrating compliance with the loan agreement.
* The plaintiff provided all necessary documentation requested by the lender, fulfilling their obligations under the agreement.
* The plaintiff maintained the property in good condition, adhering to all maintenance requirements specified in the loan agreement.
* The plaintiff communicated promptly with the lender regarding any financial difficulties, showing a willingness to resolve issues amicably.
* The lender failed to provide adequate notice of any alleged breaches, preventing the plaintiff from addressing any concerns in a timely manner. - Element 5. The plaintiff was harmed. The plaintiff was harmed means that the person who is suing suffered negative consequences, like losing their home or facing financial difficulties, because of the wrongful foreclosure, showing that the situation had a real and damaging impact on their life.
Facts that might support this element look like:
* The plaintiff lost their home due to the foreclosure, resulting in significant emotional distress and financial instability.
* The foreclosure led to a decrease in the plaintiff’s credit score, making it difficult to secure future loans or housing.
* The plaintiff incurred legal fees and costs while attempting to contest the wrongful foreclosure, adding to their financial burden.
* The plaintiff experienced a loss of personal property and belongings during the foreclosure process, which they were unable to recover.
* The plaintiff’s family was displaced from their home, causing disruption to their daily lives and educational stability for their children. - Element 6. The defendant’ actions were a substantial factor in causing the plaintiff’ harm. In a wrongful foreclosure claim, this means that the defendant’s actions played a significant role in causing the financial harm or loss that the plaintiff experienced, showing a direct link between what the defendant did and the negative impact on the plaintiff.
Facts that might support this element look like:
* The defendant initiated foreclosure proceedings despite the plaintiff’s timely mortgage payments.
* The defendant failed to provide the plaintiff with required notices prior to initiating foreclosure.
* The defendant misrepresented the status of the plaintiff’s loan, leading to confusion and financial distress.
* The defendant ignored the plaintiff’s requests for loan modification, which could have prevented foreclosure.
* The defendant proceeded with foreclosure while the plaintiff was actively seeking assistance through a government program.
(See California Civil Jury Instructions (CACI), No. 4920.)
If you’re in court without a lawyer and plan to assert a Claim of Wrongful Foreclosure, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge to effectively navigate your wrongful foreclosure claim.
Prove Your CA Wrongful Foreclosure Claim
U.S. Civil Cases Only