Often, foreclosure is the crash at the end of a long, destructive train wreck.
Life changes, unexpected or anticipated, contribute to destroying your finances, which in turn put your home in jeopardy of foreclosure.
You can't always plan for how these things will affect your life, but you can be aware of their warning signs.
This will allow you to act quickly to get your finances back on track before foreclosure becomes a reality.
The following events impact your finances in a negative way and should serve as warning signs of a possible foreclosure: 1.
Loss of employment or reduction of hours 2.
Inability to find a job 3.
Major illness or injury 4.
Divorce, separation or death of a spouse 5.
Changes in your mortgage payment (due to changes in an adjustable-rate mortgage, for instance) that can increase your payments tenfold overnight 6.
Using credit cards to pay for day-to-day expenses (e.
g.
groceries, bills, etc...
).
This is an important sign to look for.
This shows that the money you are bringing into your home isn't enough to pay your basic living expenses.
7.
Being unable to pay bills on time 8.
Having to prioritize which bills should be paid 9.
Maxing out credit cards 10.
Being able to pay only the minimum amounts on credit cards Talk to your lender right away if you are experiencing any of these difficult conditions.
Housing counselors can also help you go over your options and map out a plan to fight foreclosure.