The recent economic downturn broadly illustrated that even fiscally responsible Americans may find themselves struggling mightily with their finances from time to time. Individuals may find themselves on the brink of foreclosure or filing for bankruptcy for any number of reasons. For example, the number one reason why Americans currently file for personal bankruptcy is overwhelming medical debt tied to unexpected illness or injury. No matter what kind of job you hold or what kind of life you lead, the fact of the matter is that you may end up struggling with overwhelming debt at some point, despite your best efforts to stay on top of your finances.
Recently, Realty Trac reported that over one million U.S. homes are currently affected by some stage of the foreclosure process. Countless others are within months of being targeted by foreclosure professionals. If you are struggling with overwhelming debt of any kind, your home could be at risk of being foreclosed upon should you ever find that you cannot make your mortgage payments in a timely fashion.
You almost certainly purchased your home with some sort of household budget in mind. But if you or your spouse has recently lost a job, have become injured or ill or if you have had to take on significant debt of any kind, your mortgage payments may no longer be in line with your budget.
If you are concerned that your debt load or a recent life event has made your home vulnerable to potential foreclosure actions because you cannot make your mortgage payments on time, please consider speaking with an attorney experienced in foreclosure matters and debt relief. He or she will hopefully be able to educate you about some legal options that may help your situation significantly.
Source: Wall St. Cheat Sheet, "Does your home fit your budget?" Erika Rawes, May 19, 2014