Foreclosure Trial Lawyer
Over 600,000 properties were reported as foreclosed in 2018. And while that is a decline of 8% from 2017, that is still a large number of foreclosures happening in the United States. Foreclosure can happen to anyone no matter their location or socioeconomic status. All it takes is to fall behind on your mortgage and you could be subject to foreclosure. So what causes people to fall behind on their mortgage payments? Here are some of the top reasons people end up in a foreclosure situation.
Unemployment can happen to anyone – sometimes when we least expect it. And with a tight job market, it could be a while before you are employed again. This could have a significant impact on your finances – especially if you are the main breadwinner. Many people don’t have enough money in their savings account as a cushion for when things like this occur and therefore is a cause of foreclosure.
2. Credit card debt
Millions of Americans have credit card debt – and sometimes that debt gets out of control. If you are faced with missing your credit card payment (which can have up to 24%+ interest rate) or your mortgage payment (which generally has around 4% interest), some people choose to pay their credit card over their mortgage. They would rather file for foreclosure than deal with bankruptcy.
3. Medical bills
Just like unemployment, we can never know when ourselves or someone in our family will be hit with a serious illness or in a serious accident. In life or death situations, you will always put the healthcare of yourself or a loved one first. And that means you may have to miss a few mortgage payments as a result.
4. Adjustable rate loans
Adjustable rate loans can seem very tempting when you are looking at buying a house. They show that you can have a low house payment and interest rates when the adjustable rate is low. However, because the rate is adjustable, it can increase at any time, leaving you with an unexpected higher mortgage payment that you might not be able to afford.
If you have to suddenly move to a new city because of a new job, you may not have time to sell your home. Now, you are faced with a double mortgage that can become unsustainable if your old home stays on the market for an extended period of time. Some people will choose to let their other home fall into foreclosure because they cannot make ends meet when paying for two mortgages.
Foreclosure is not a matter to take lightly. It can severely impact your credit score making it extremely difficult for you to purchase another home, find insurance, or buy anything else that you need good credit in order to purchase. If you find yourself in an inevitable foreclosure situation, seek legal advice from a foreclosure trial lawyer to see what the best next steps are for you and your family. They can help you fight for your home back or guide you through the process of foreclosure.