Top Reasons for Foreclosures

A home can enter into foreclosure for a number of reasons.

1. Economic Recession/Loss of Job - Many times homeowners cannot control external financial factors like a slow-down in the economy, the closing of an office or plant, or loss of a job.
2. Predatory Lending - Lesser-known lenders will often approve buyers for amounts greater than they can afford and for extremely high interest rates, knowing full-well that the homeowners will not be able to cover their payments for very long.
3. Recent Divorce - Often times, a spouse is awarded the house in a dissolution, but after a few months is unable to cover the entire mortgage payment alone.  With a divorce rate of nearly 50%, it is easy to see why so many of these houses go into foreclosure.
4. Medical Condition - Unexpected illness can create important medical expenses that cannot go ignored, causing the mortgage to become overdue.  Some things are simply more important than a mortgage.
5. Buying a New Home/Two Monthly Payments - Sometimes homeowners become so anxious to move into a new home that they buy without selling their first house.

No matter what the reason, foreclosure is not the solution.  Be proactive and learn about the foreclosure process, to talk to your lender, and find out what you can do to help yourself out of the situation. Look into short sales and see if this is an option for you.

Technorati Tags: Buying A New Home, Control, Dissolution, Divorce Rate, Economic Recession, Economy, Financial Factors, First House, Foreclosure, Foreclosures, High Interest Rates, Job, Lenders, Medical Condition, Medical Expenses, Monthly Payments, Mortgage Payment, Predatory Lending, Slow Down, Unexpected Illness

Related posts:

1. Short Sales - More Sellers and Lenders Consider Short Sales as Foreclosures Rise
2. First Time Buyers are Looking for Foreclosures
3. Short Sales: Foreclosure Myths
4. Short Sales: What is the Hardship Letter

Tagged with: Buying A New Home • Control • Dissolution • Divorce Rate • Economic Recession • Economy • Financial Factors • First House • Foreclosure • Foreclosures • High Interest Rates • Job • Lenders • Medical Condition • Medical Expenses • Monthly Payments • Mortgage Payment • Predatory Lending • Slow Down • Unexpected Illness

Filed under: Foreclosures

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