Warning signs due to life changes:
Unexpected life changes often contribute to home foreclosures – especially changes that affect finances, such as:
- Loss of employment or reduction of hours
- Major illness or injury
- Divorce or separation
- Death of a spouse
It is difficult to think about foreclosure during times of crisis when you are focused on an unexpected problem or situation. The best way to protect yourself from foreclosure risks due to unexpected life changes is by developing a plan before problems arise.
If you have a "Plan B" in place, you won't have to organize your finances while you are stressed about finding a job or dealing with a major illness. You will already have a plan – you just need to follow it.
Financial Warning Signs:
There may not be a major life change to signal potential trouble – you simply may be having a difficult time properly managing your finances. Don't be fooled into thinking your credit card problems won't affect your mortgage. It is important to realize that financial difficulties in one area can, and often do, spill over into other areas. These difficulties may potentially result in financial problems that could lead to your home being foreclosed if you do not act quickly. Such difficulties include:
- Mortgage payment changes (changes in interest rate, property taxes, homeowner insurance, and/or other mortgage loan changes, etc.)
- Maxing out credit cards
- Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
- Being unable to pay your bills on time
- Paying only the minimum amount on credit cards
- Applying for new credit cards after maxing out existing ones
- Having to choose which bills and/or living expenses to pay first
Talk to AFDN housing counselor immediately if you see these signs. You may be able to get your finances back on track before foreclosure becomes a reality. Feel free to Contact Us to be connected with our HUD- approved housing counseling. This service is FREE!
Financial Housing Counseling
Wondering if you might qualify for any down payment or first-time home buyer programs? Housing Counselors offer FREE private & confidential one-on-one professional advice to help you achieve your dream of homeownership.
Our Housing Counselors will work with you to:
- Determine what you can afford
- Develop a budget and savings plan
- Find the right mortgage product for your needs
- Address credit problems that could prevent you from getting a mortgage
- Create a customized Action Plan with specific, manageable steps to help you achieve your goals
Whether you are considering purchasing a home or already have found your dream home, Housing Counselors are available to answer your questions. A free and confidential service, Housing Counselors can review your finances, credit report, and provide information on current mortgage loan programs, including down payment and closing cost assistance.
Feel free to Contact Us with questions or comments.
