Foreclosure Warning Signs

Unexpected life changes can be a factor towards foreclosing, since they can have an impact on finances:

• Loss of employment or reduction in hours worked
• Divorce or separation
• Major illness or injury
• Death of a spouse

Having to experience a foreclosure adds more stress to already stressful times and or times of crisis and a borrower may not have the time or energy to think about a foreclosure.

Here are some financial warning signs:

Don’t be fooled into thinking that credit card problems won’t have an affect on your mortgage. It is important to realize that financial difficulties in one area can spill into other areas. These difficulties are warning signs of financial problems that could lead to foreclosure on your home, if you do not act quickly.

• Maxing out credit cards
• Using credit to pay day-to-day expenses, such as groceries, utilities, etc.
• Being unable to pay bills on time
• Paying only the minimum on credit cards
• Applying for new credit cards after maxing out existing credit cards
• Having to choose which bills to pay

Speak with a housing counselor immediately if any of the above signs match your circumstances. You may be able to get your finances in order before foreclosure becomes a reality.

Identify a legitimate credit counselor