Early Warning Signs of Foreclosure
Unexpected life changes and sometimes even anticipated changes are often a contributing factor to foreclosure – especially those that impact your finances, such as loss of a job, a major illness in the family, or a steep and unaffordable increase in your mortgage payment.
Or, there may not be a major life change to signal potential trouble; you simply may be having a difficult time properly managing your finances.
Financial difficulties in one area can, and often do, spill over to other areas. These following are all warning signs of financial problems that can lead to foreclosure on your home:
- Maxing out credit cards
- Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
- Being unable to pay your bills on time
- Paying only the minimum amount on credit cards
- Applying for new credit cards after maxing out on existing ones
- Having to choose which bills to pay
- Being unable to maintain your home
If you recognize any of these signs, talk to a housing counselor immediately. You may be able to get back on track before foreclosure.
If you are struggling to make your mortgage payments on time or believe you may fall behind on them soon, reach out to your lender as soon as possible. For more information on how to get help, visit our Mortgage Help Resource Center.
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