State Supreme Court Okays Wrongful Foreclosure Lawsuits

FRESNO, Calif. (KMJ) — The housing meltdown saw hundreds of thousands of California homeowners lose their property to foreclosure.

In some cases, bank employees signed off on foreclosure documents, without even reading them; it’s a process called “robo-signing.”

Now, the California Supreme Court has ruled that some former homeowners, will be allowed to file a lawsuit on the grounds of wrongful foreclosure, even if their loan was in default.

However, it’s unclear what they’ll get. Many legal analysts say it appears unlikely, that a plaintiff could reverse their foreclosure, and win back their home.