While every foreclosure case is, in a sense, unique, there are nevertheless certain issues that tend to arise repeatedly among people who struggle to pay their mortgage. While it can be easy to blame people for their financial misfortune, the fact of the matter is that most of these problems are outside of their control. Here are five of the most common causes that lead to foreclosure cases:
- Medical expenses
- There is no single cause of foreclosure cases more common in the United States than sudden medical expenses. Even people with medical insurance can be blindsided by illness or injuries that, for one reason or another, insurers will not cover. This can leave them with tens or hundreds of thousands of dollars in debt, making it impossible to keep up with their mortgage payments.
- Natural disasters
- Likewise, natural disasters like sudden storms or fires can cause significant damage to life, limb, and property. While homeowners’ insurance can help to cover these expenses, this does little to help people who are not insured for the specific type of disaster they experienced. In the end, a surprising number of foreclosure cases arise from trying to repair damage done to the property that is being foreclosed on.
- Loss of income
- The sudden loss of an income stream can also lead to a potential foreclosure. This can be the result of being laid off at work, or from contracts drying up, or in the case of business owners, it can be due to the failure of their company. Without this expected income, a mortgage that might previously have been manageable can suddenly become overwhelming.
- Divorce
- Marital problems can also factor significantly into foreclosure cases. People may purchase homes expecting to support the cost with their shared income, only for one person to take over the full mortgage when they get divorced. Add on the expenses for litigating a divorce case, plus additional burdens like child support or spousal support, and foreclosure may become inevitable.
- Unexpected repairs
- It is common for people suffering from financial distress to put off maintenance and repairs for vehicles or appliances as long as possible. While this helps to save money in the short term, it can lead to much more disastrous mechanical failures that can be incredibly costly to fix. If the bills add up enough, they may face foreclosure due to being unable to perform upkeep.
At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are at risk of losing their homes to foreclosure. We will explain your options and guide you in making the best decision for your circumstances. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.
Recent Comments