Every year, millions of Americans face foreclosure. For any number of reasons, a person may end up missing a mortgage payment, which starts the foreclosure process. Being aware of the reasons which commonly cause people to miss their mortgage payments is one of the best ways you can avoid facing a foreclosure yourself.
One of the most common causes of foreclosure is unexpected unemployment. The United States economy can be very volatile at times, which can lead to mass layoffs. If possible, you should try to have enough in savings to cover your mortgage in the event of an unexpected loss of employment.
Divorce is another major cause of foreclosures throughout the country, for a few reasons. First of all, the division of property, loss of income, and legal expenses can throw individuals, who are involved in a divorce, into financial turmoil. Moreover, the stress caused by the divorce process itself oftentimes causes one to ignore important financial issues.
People decide to relocate all the time. Whether it be for personal reasons or for their job, relocation can cause people to struggle financially. In many cases, a sudden relocation doesn’t leave enough time to sell your old home – leaving you with two mortgages to pay.
Unexpected medical expenses can be an incredible financial burden that can cause you to miss your mortgage – particularly in the US. Medical expenses in the US can be outrageously expensive, which can cause you to not be able to afford your mortgage. Additionally, depending on your condition, you may not be able to work for an extended period of time.
Debt, particularly credit card debt, affects most US citizens. For many individuals, credit card debt can become uncontrollable – leaving them to choose between bankruptcy and foreclosure. If you are one of the millions of Americans affected by one of these factors, consult a foreclosure defense attorney to help you understand how you can avoid foreclosure given your specific circumstances.