Chalk up a recent success for homeowners in the fight against wrongful foreclosures. Recently, attorney Walker M. Duke of Duke Law Office, P.C. in Dallas, Texas, obtained an injunction preventing JP Morgan and related entity Chase Home Financial from foreclosing on an Austin-area home. Mr. Duke filed a lawsuit against JP Morgan, Chase Home Financial, and American Homefront Mortgage seeking declaratory judgment that none of those companies owned the actual debt on the house and therefore, had no right to foreclose. See the lawsuit here.
“This injunction was a real victory for the homeowner, but it also sends a strong message to banks. I think we will see a trend of judges holding lenders accountable. If they want to foreclose on a house, they had better be able to prove they followed all the legal requirements,” said attorney Walker Duke, who successfully obtained the injunction.
But attorney Duke cautioned that the bank was not going to stop the foreclosure sale without a court order. “We literally stopped the trustee who was conducting the foreclosure sale on the courthouse steps. The bank had every intention of foreclosing on the home until we obtained an injunction stopping the sale while the lawsuit is pending.”
Duke concluded, “It just shows you how aggressive these banks can be. They take the approach of ‘foreclose first, ask questions later.’ “