Reasons for Foreclosure
One of the most important possessions of a family is the house. The house is not just a place of comfort, security, and shelter, as it is most of the time a part of the family – a home. But there are instances where homes are foreclosed, or in other words, be taken by the lender after the family has failed to pay the mortgage.
There are many reasons why families have no choice but to give up their homes, but the core idea behind these reasons is that the families cannot afford them anymore. One reason is that the earner in the family has encountered employment issues, like being laid-off or fired. The family may have limited financial capabilities if their earner has suddenly lost a job, so paying for mortgage may be a problem.
The worker in the family may even sustain injuries or illnesses that limit his or her earning capacity. The injury or illness may partially or totally make the victim unable to work. But this is not just the financial impact of medical conditions. The conditions may also require too much medical expenses that the family has prioritized these expenses first than the mortgage.
There may be internal factors in the family that can affect mortgage payments and foreclosure. A husband who is committing domestic violence may trigger divorces and the financial costs of such legal processes. A wife who cannot control her spending may create issues when it comes to liabilities and assets payments.
Other financial problems
They may have financial problems even though they do not have employment issues, medical conditions, and family problems. They may have put their money on the wrong priorities, like maintenance work at the house and investment on fraudulent stocks. In fact, they may even go bankrupt merely because of poor decision-making. The website of Erin B. Shank, P.C. says that one way to counter mortgage problems is by getting a home loan modification for reduced interest rates and forgiveness of some portions of mortgage debt.
According to the website of Gagnon, Peacock & Vereeke, P.C., there are a number of different issues that may make foreclosures illegal, such as the following:
- Failure to provide homeowners with appropriate notices
- Lender bad faith
- Overcharging homeowners for late payment fees
- Predatory lending