Top Reasons Homeowners Fall into Foreclosure:

1. Loss of Job/Economic Recession – Many times circumstances are beyond the homeowners control like a job layoff due to downsizing or business closing or a slowdown in the economy.
2. Predatory Lending – Some lenders will approve buyers for amounts that are greater than they can really afford with high interest rates or with adjustable rate mortgages.
3. Divorce – Typically, a spouse is awarded the house in the divorce and can’t afford the payments on one income. Divorce rates are high; therefore this has become a common reason for foreclosure.
4. Medical Illness – Unexpected medical illness can cause great financial hardship but are a necessity. Medical expenses can cause you to fall behind in your mortgage.
5. Buying a Home Before Sale of Existing Home – Impatient home buyers will sometimes buy a new home before they sell their existing property. Having to pay two mortgages can cause a financial hardship.

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