ELEMENTS OF CAUSE OF ACTION FOR WRONGFUL FORECLOSURE
The elements of a wrongful-foreclosure claim are: (1) a defect in the foreclosure sale proceedings; (2) a grossly inadequate selling price; and (3) a causal connection between the defect and the grossly inadequate selling price. Sauceda v. GMAC Mortg. Corp., 268 S.W.3d 135, 139 (Tex. App.-Corpus Christi 2008, no pet.).
SOURCE: FORT WORTH COURT OF APPEALS - 02-14-00034-CV - 2/15/2015
Under Texas law, a claim for wrongful foreclosure generally requires: (1) "a defect in the foreclosure sale proceedings;" (2) "a grossly inadequate selling price;" and (3) "a causal connection between the defect and grossly inadequate selling price." Miller v. BAC Home Loans Servicing, L.P., 726 F.3d 717, 726 (5th Cir. 2013) (citing Sauceda v. GMAC Mortg. Corp., 268 S.W.3d 135, 139 (Tex. App.—Corpus Christi 2008, no pet.)).
SOURCE: FIFTH CIRCUIT: Guajardo v. JP Morgan Chase Bank, NA, Court of Appeals, 5th Circuit Jan 12, 2015
MEASURE OF DAMAGES IN WRONGFUL FORECLOSURE SUIT
"A plaintiff seeking damages for wrongful foreclosure must show that (1) an irregularity in the foreclosure sale (2) caused the plaintiff damages." Houston Omni USA Co. v. Southtrust Bank Corp., No. 01-07-00433-CV, 2009 WL 1161860, at *6 (Tex. App.-Houston [1st Dist.] Apr. 30, 2009, no pet.) (mem. op.) (citing Univ. Sav. Ass'n v. Springwoods Shopping Ctr., 644 S.W.2d 705, 706 (Tex. 1982)). The "correct measure of damages" for wrongful foreclosure is "the difference between the value of the property in question at the date of foreclosure and the remaining balance due on the indebtedness." C & K Invs. v. Fiesta Grp., Inc., 248 S.W.3d 234, 254 (Tex. App.-Houston [1st Dist.] 2007, no pet.) (citing Farrell v. Hunt, 714 S.W.2d 298, 299 (Tex. 1986)).
SOURCE: HOUSTON COURT OF APPEALS - 01-13-00855-CV – 12/30/2014
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