A foreclosure usually occurs when a borrower cannot stay current on mortgage payments for an extended period of time. When local economies are in bad shape, foreclosures generally rise in number. Sometimes, wrongful foreclosures are filed and property owners have to challenge them in court. Keep reading to find a rundown on wrongful foreclosures.

Instances of Wrongful Foreclosures

The Pew Research Center says Las Vegas was among the national leaders for the most foreclosures during the Great Recession that lasted from about 2008 to 2012. More than 5 percent of homes in the greater Las Vegas area were subject to foreclosure, while the national average at that time was 1.8 percent. More recently, according to SoFi Learn, South Carolina led the nation in foreclosures with one for every 2,301 homes subject to foreclosure in 2022. That is a much smaller percentage than Las Vegas and similar locales posted during the Great Recession.

Foreclosures Must Have Merit

Receiving notice of a pending foreclosure never is a happy moment for any property owner, but the matter is not automatic. The foreclosure must have legal merit, but many do not. A foreclosure often comes from a mortgage lender, but others also could file a foreclosure on a property. A homeowner might default on a mortgage or not pay for work done on the home or its adjacent property. A foreclosure attorney can determine if the foreclosure is legitimate or if you should oppose it.

How Wrongful Foreclosures Work

When a person or business entity initiates a foreclosure without legal cause, it is termed a “wrongful foreclosure.” An experienced foreclosure attorney can help homeowners and other property owners successfully challenge wrongful foreclosure actions against their properties. A wrongful foreclosure might occur because there simply is a mistake that your attorney can help you to correct. The filing party might have lost track of your payments or maybe got the account numbers mixed up.

It also is possible that the party that filed the foreclosure is committing fraud by falsely claiming you own money for a loan or services provided. An attorney can help to review the cause of action and challenge any falsehoods or mistakes that the filer might have made.

You can meet with an experienced foreclosure attorney by contacting Hamilton & Childs Law, PLLC to schedule an initial consultation. Our attorneys help homeowners and other property owners to understand their legal rights and challenge wrongful foreclosures whenever possible. Call us today for assistance!