- Credit card debt out of control (Maxed out cards). Paying the minimum amount due.
- Paying for necessities with credit cards (groceries, utilities, etc).
- Cannot meet monthly financial obligations (choosing which bills to pay).
- Borrowing from friends and family.
- Loss of employment, or reduction in hours or wages.
- Major illness which can cause loss of work and an increase in health expenses.
- Divorce, separation or other traumatic family or personal situations.
- Death of a spouse or significant other.
- Cannot pay the new Adjusted Payment on the ARM mortgage loan.
- Major unbudgeted maintenance expense.
- Excessive debt is the number-one cause of financial collapse and foreclosure.
Avoiding Foreclosure Checklist Homeowners' Options
- Bring your loan current and maintain regular payments in a timely manner.
- Work out a repayment plan.
- Refinance your home with better rates and terms.
- Modify your current loan with your Lender.
- Rent your home and make the mortgage payments to your Lender.
- Sell your home and pay off the loan amount due.
- Borrow money from a relative or friend to bring your payments current.
- Get protection under the Service Members Civil Relief Act (SMCRA).
- Enter into a Deed In Lieu of Foreclosure or "friendly foreclosure."
- File for Bankruptcy protection to stall the foreclosure process.
- Sell your home in a "short sale" if the Lender will accept a discounted payoff for the outstanding mortgage due.
