What Causes Home Foreclosures?Posted in Foreclosed Homes, by Jane Scott
Many people ask, “What causes home foreclosures?” The recent trend of home foreclosures has been started by a number of things. First, the economy and the job loss rate – people are losing more and more jobs to overseas competition.
Second, loss of said jobs can put you behind with no financial support. Illness and death can also play a major role here. Taxes also play a role with death taxes, insurance taxes and home taxes leading the way.
If you are also behind in insurance or mortgage payments, you can bet that you are a candidate for foreclosure. Owing the IRS can also get your home seized and foreclosed upon so quick that it will make your head spin.
Most people are stunned by this information. When you ask other people–“What causes home foreclosures?”– you will learn that, besides the above-mentioned, there are other ways to go into major debt, such as child support.
Not paying your bills on time can also get you into the hot seat and with no way out either. It is very easy to slip into the abyss of financial troubles and it can be extremely difficult to dig your way up and out of it. It can be done but it certainly isn’t easy. Correcting financial troubles can make the difference between keeping your home and having to make other living arrangements—sometimes on short notice. Being evicted from your home is not what you want for yourself or your family.
People need to stay informed and understand what exactly causes home foreclosures. Most of the main principles are listed above. A determination to live within your means is the surest way to prevent trouble and is also the surest way out of trouble. You can sometimes do something to earn a little extra income, but it is more important to control your spending.
It will help if you make a budget and stick to it. Start a savings account, paying something into it each pay period and don’t touch it unless you absolutely need to. Using common sense when it comes to your bills and finances will help you stay out of the red and avoid a home foreclosure.
Bad habits, such as a gambling addiction or a drug addiction, are some other areas that can really get you into trouble with foreclosure.
When people ask, “What causes home foreclosures?” they get this answer: not paying attention to your financial responsibilities, wasting money on things you want rather than things you need, and not keeping your checkbook balanced. The lists created above are a sure fire way to get yourself into hot water. Following such sound financial advice will help you to stay out of debt.