When people face the risk of foreclosing on their homes, they feel like it must be their fault. However, the vast majority of foreclosures are the result of circumstances outside of the homeowners’ control, and in many cases, could not have been prevented. Here are just some of the most common reasons that people foreclose on their homes:
- Medical expenses
- By far one of the biggest reasons that people find themselves needing to foreclose on their home is medical expenses. Even if you have insurance, an unexpected medical emergency can cost you tens or hundreds of thousands of dollars. With that kind of sudden debt, it may become impossible to keep up with mortgage payments, resulting in foreclosure.
- Natural disasters
- Another common reason that people foreclose on their homes is natural disasters. Hurricanes, floods, earthquakes, tornados, and wildfires can appear at any time, destroying your property and costing you an enormous amount of money in repairs. In the end, you may not be able to afford the cost of repairing your home and replacing your lost personal property, even with home insurance, leading to foreclosure.
- Sudden repair bills
- You don’t need a natural disaster to experience sudden costs from repairing or replacing your property, however. Vehicles, utilities, and appliances can all suddenly experience a serious mechanical failure, and replacing them can put a major hole in your finances. If that happens, you may find yourself unable to juggle your mortgage and your repair bills, leading you to foreclose on your home.
- Job loss or pay cut
- When you take out a mortgage, you do so with the expectation that you will have the money to pay for it with your current job. However, if you suddenly lose your job, or get forced to accept a pay cut, your previously affordable mortgage may become impossible to maintain. If that happens, you may need to foreclose on your home.
- Divorce or death of a spouse
- People count on their spouses to help support them through thick and thin, and that includes the financial support from your spouse’s income. If your spouse suddenly dies or chooses to divorce you, you may find yourself with a mortgage you can no longer afford. If that happens, you should contact a lawyer with experience handling foreclosure law, who can help guide you through your next steps.
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.
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