Overall, foreclosures in the U.S. are in a bit of a down period, even with a slight increase from last year. To put things in perspective, one market report showed that during the first quarter of 2018, 189,870 U.S. properties made a foreclosure filing, 4 percent higher than the last quarter but 19 percent down from the same time last year.
However, this is little comfort to people who may end up finding themselves struggling with a foreclosure right now. When financial issues start creeping up and a mortgage starts getting harder and harder to pay, a house is closer and closer to getting seized by a bank or other lender. Here are some warning signs of foreclosure you may want to look out for before it’s too late to save your home.
A lot of first-time homebuyers are enticed by the low payments and interest rates that these mortgages offer, but these rates aren’t guaranteed. Ideally, before you ever borrow in the first place, you want to have a concrete idea of when your prices are going to grow and how. The last thing you want is to end up caught by surprise a few years down the line when your budget has just started to settle.
One of the most common issues that lead to foreclosure is divorce. There’s a number of reasons for this. One spouse may have a larger issue with debt or budgeting than the other, putting both of their financial health at risk. In some cases, it’s the divorce process itself that can lead to foreclosure. The prolonged stress of a divorce combined with the sudden financial shift of having only one income versus two can make it much more difficult to keep up with the mortgage payment.
If there’s one single situation that’s most likely going to lead to foreclosure, this is it. It’s one thing to spend more money than you have and get into financial trouble, but it’s another thing to suddenly make far less or no money. There are a variety of reasons that can cause this, from losing one’s job to medical issues that keep you from working to suddenly taking on a massive financial commitment.
In some cases, people end up having to pay the mortgage on two properties despite only living in one. This may happen in situations like having to move out of a home quickly when you need to take on a new job, or inheriting a home when someone passes away. In either case, you get stuck paying two mortgages until the second property sells, which could be months or even years with the traditional selling process. You may even have to make repairs to the property in order to list it at all, costing you even more time and money.
One of the most long-lasting issues with foreclosure is the impact it can have on your credit. If you are able to sell your home, you may be able to avoid that particular problem. The traditional selling process and the time that it requires is a poor fit for households headed toward foreclosure or already struggling with it. This doesn’t mean that you can’t sell your home if you are facing foreclosure. HomeGo can help you sell your home quickly at a fair price, in a variety of different regions around the country. By selling to us, you may be able to avoid a lot of the major issues that come with foreclosure and head into the future with a better financial platform.