Reasons to File For Bankruptcy – Foreclosure
Unfortunately it does happen, especially when economic times are tough – people need to file for foreclosure on their home. It is not something that anybody liked to do. But sometimes it is necessary. Quite often other people jump to conclusions when someone loses their home to foreclosure. They chalk it up to irresponsible behavior. This is frequently not true. Most of the time; the circumstances are beyond the family’s control. This article looks at some of the common reasons people decide foreclosure is their only way out. We hope to help shed some light on this subject for you.
One of the most common reasons a home winds up being foreclosed upon is divorce. Of course we all know that divorce is a life-changing issue. In today’s society it is also quite prevalent. Divorce often leads to the one left with the home becoming unable to afford the mortgage payments on their own, no matter how hard they try. They may first try alternatives like a second mortgage or selling the home to a well-known home flipper. Yet these alternatives do not work out for them. So ultimately their home is foreclosed on. This is nobody’s fault, it just happens.
The other most common reasons a home winds up in foreclosure are those of a medical nature. One spouse becomes gravely ill or perhaps even passes away. Not only does the remaining spouse now have mortgage payments to maintain, but also medical or death-related expenses piling up. This spouse surely cannot afford to keep up with all of these bills. Again they may try other alternatives to come up with all of the money they need, and again to no avail. To make matters worse; any repairs to the home that come up get neglected due to these financial hardships. So now not only have the mortgage payments piled up; but the house is deemed too ugly to sell. Once again, the only option becomes foreclosure. Unless a family is supposed to have a crystal ball on hand, illness is not predictable and is nobody’s fault.
A poor economy often leads to yet another reason a family faces foreclosure on their home – the loss of a job. It may be true that occasionally this is due to poor job performance. However; more often than not, it is simply because the employer is forced to reduce his staff. Perhaps an effort is made to just take a reduction in salary for all employees. Eventually even this is not enough and people get laid off. With this being an all-too-common occurrence, many other people are also looking for replacement jobs. This makes it difficult for the affected person to find another job. The mortgage payments then pile up and foreclosure becomes inevitable. This is really no one person’s fault. It is an unfortunate fact of life. Typically nobody sees this coming and there is nothing they can do about it once it does happen.
We would say at times like this a family can use understanding, not ridicule. Remember, it could happen to you too.