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New Legislation Offers Options for Victims of Wrongful Bank Foreclosures

March 8, 2010 - Washington, D.C. - Wrongful bank foreclosures affect more than just homeowners struggling to pay their mortgage. In fact, nearly half of the people affected by wrongful foreclosures are tenants who are suddenly displaced when their landlord forecloses.

The Hill reports that about 40% of people being wrongfully kicked out of their homes are tenants, many of whom have no prior warning of their landlord's financial difficulties. Unfortunately, many tenants do not have a strong support system or the resources to fight back against wrongful foreclosure. These residents may find legal strength when joining together with similarly wronged consumers in a class action lawsuit, as opposed to fighting on their own.

Wrongfully evicted tenants who retain the service of an attorney typically know their rights, and can usually extend their stay in the home. Unfortunately, many tenants are unable to afford an attorney, and about 1 million people each year are turned down when they seek help from civil legal aid agencies funded by the federal government. This happens because the agencies do not have enough funding to help all of the consumers that need assistance, either because of wrongful bank foreclosure or other issues.

The new Civil Access to Justice Act allows injured consumers and residents to take advantage of the Legal Services Corporation, which gives money to nonprofit legal services. In addition, the act repeals a provision of the law that said clients of such services could not participate in class action lawsuits. These changes give consumers more affordable and effective avenues to fight back against wrongful bank foreclosures.

The Massachusetts wrongful bank foreclosure class action attorneys at Phillips & Garcia will fight for your rights in your class action case. We are committed to protecting your best interests and helping you collect the damages you need and deserve to move on with your life. Contact Phillips & Garcia today to schedule your FREE legal consultation - (877) 892-5620.