22 Feb Reasons People Face Home Foreclosures
Real Estate Litigation Lawyer Newport Beach, CA
When a person’s home is foreclosed upon, chances are, it wasn’t the first option they had considered. For many feeling in over their heads, it can feel like the only option. Have you ever struggled to pay your monthly expenses? Has the amount of money you bring in each month suddenly become less than your expenses each month? Many Americans today live paycheck to paycheck, barely meeting their financial expectations. As a result, the slightest change such as job loss or injury can result in a person’s inability to afford the lifestyle they had not only become accustomed to, but financially committed to. There are a multitude of reasons homeowners may experience a foreclosure on their property:
Reason #1 The Value of a Home Falls
With changes to the market today, some people have experienced a fall in the equity they once had in their home. This can cause a number of problems to transpire. One of the most terrifying experiences for a homeowner is to watch the value of their home greatly reduce due to changes in the market. This may result in homeowners owing far more than their home is worth.
Reason #2 The Person Supporting the Family Passes Away
When a person passes away, it can be incredibly devastating for family members. One thing many do not consider is the financial impact this could have on the family that person supported. When a breadwinner passes away, a spouse may have difficulty in continuing to cover expenses that were once afforded with the income the person who passed once brought to the table.
Reason #3 Illness or Injury
When a person becomes seriously ill or injured, their ability to continue working can have consequences that one probably hadn’t considered. Both illness and injuries often are unexpected, making them difficult to plan for. As a result, a person may no longer be able to afford their financial commitments.
Reason #4 Poor Financial Planning
Some people may struggle to manage their finances in a responsible manner. When a person buys a house, it’s important to carefully consider all of the expenses that can come along with it. Some people are not savvy in managing their debts. As a result, they may find it difficult to make their mortgage each month, especially if they have overcommitted themselves or purchased a home that was outside of their budget.
Reason #5 Job Loss
One significant change in a person’s financial situation can result from a person’s job loss. This can not only be a setback in a person’s career, but it can also have a financial impact. When a person loses their job, they may not be drawing any sort of an income. Many losses of employment can come unexpectedly, whether you were laid off or fired, it was probably not something you had financially planned for.
Being unable to afford your home can be not only heartbreaking, but a shameful experience to endure. Because of this, you will want to determine the best way to endure this process in the smoothest and least painful way possible. A real estate litigation lawyer Newport Beach, CA offers may be able to help advise, support, and represent you in what is likely to be a stressful and emotionally fueled process.
Contact Terry Mudge, LLP for their insight into real estate law and home foreclosures.