Foreclosure as Debt Collection

Michigan law is notoriously unfavorable to homeowners facing foreclosure.  Homeowners who have been unfairly treated by lenders, mortgage servicers or foreclosure lawyers have been denied relief in Michigan’s courts time after time, as the traditional legal theories used to combat wrongful foreclosures have slowly eroded.

One frequently neglected tool in the homeowner’s arsenal is the federal Fair Debt Collection Practices Act (“FDCPA”), which restricts the foreclosure activities of attorneys and default mortgage servicers.  The FDCPA, long used by consumer protection lawyers against debt collectors, also prohibits many types of misleading, deceptive and unfair activities by these servicers and foreclosure lawyers.  The Sixth Circuit confirmed the applicability of the FDCPA to foreclosure activity in the important case  Glazer v. Chase Home Finance LLC, paving the way for consumer lawyers to hold foreclosing parties accountable for money damages and attorney fees.  Thus, while the FDCPA may not preserve the homeowner’s property rights in cases of wrongful or unfair foreclosure, it may be used to obtain restitution for the homeowner’s economic losses and mental anguish.

Contact us if you have experienced wrongful, unfair or deceptive conduct in connection with a foreclosure on your home.  We may be able to help.

TJW