What You'll Learn
- Life changes that impact your finances, such as a job loss, can impact your ability to pay your mortgage
- Financial difficulties in one area can, and often do, spill over to other areas
- Reach out to your lender or a housing counselor immediately if you recognize any of these signs
Unexpected life changes, and sometimes even anticipated changes, are often a contributing factor to foreclosure. This is especially true for events that impact your finances, such as loss of a job, a major illness in the family, or a steep and unaffordable increase in your mortgage payment.
Or, there may not be a major life change to signal potential trouble; you simply may be having a difficult time managing your finances.
Financial difficulties in one area can, and often do, spill over to other areas. The following are all warning signs of financial problems that can lead to foreclosure on your home:
- Maxing out credit cards
- Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
- Being unable to pay your bills on time
- Paying only the minimum amount on credit cards
- Applying for new credit cards after maxing out existing ones
- Having to choose which bills to pay
- Being unable to maintain your home
If you recognize any of these signs, talk to a housing counselor immediately. You may be able to get back on track before foreclosure.
If you are struggling to make your mortgage payments on time or believe you may fall behind on them soon, reach out to your lender as soon as possible.
It's important to recognize these foreclosure warning signs and reach out for help
Job loss, a major illness in the family, or a sharp rise in your mortgage payment are all contributing factors to foreclosure