How to Fight Bad Faith Waste

THOUSAND OAKS, CA—In some situations, lenders do have legal recourse against property damages. When a foreclosed property has damages made in malice that affect the property’s value, lenders can file a bad faith waste claim to recoup losses. Bad faith waste is different from waste claims, and often involve siphoning money away from a property to avoid paying for damages. To learn more about bad faith waste claims and what lenders should know to pursue these claims, we sat down with James C. Fedalen, managing partner of HFL Law Group, for an exclusive interview. Here, he talks about the legal definition of bad faith waste, how this affects rental properties, siphoning money from a property and when lenders should take action.

GlobeSt.com: Tell me about the legal concept of bad faith waste.