The Mortgage Bankers Association predicts that by the end of 2008, 2.2 million foreclosures could be in process. If you’re not sure if you’re at risk for a foreclosure, read below to learn some of the key financial signs that you may be facing a foreclosure.
Maxed Out Credit Cards. If you’re spending up to your limits on your credit cards, you may be headed towards financial trouble. Consider trimming spending and paying with debit cards or checks that draw from your bank account. Be sure to not apply for more credit cards as well. Credit card rates can get you caught in a cycle of ever mounting fees. If you’re using them for everyday expenditures, then you’re probably going to have to sit down and make some hard choices soon.
Loss of Job or Work Hours. Over the past year, job losses in Florida alone were at 156,200. If a job loss or reduction of work hours is about to happen, you may want to proactively make adjustments to your finances and mortgage payment schedule. Getting in touch with your lending institution to plan and safeguard against foreclosure can be the difference between keeping and losing your home in case work hours don’t increase or you don’t find a job quickly enough.
Major Illness. No one can ever plan for a major illness, but if the future appears to involve lots of medical bills, acting early to make financial adjusts can be essential to protecting your home.
Remember that talking things through with your lender should be a top priority if any of these signs are occurring in your life. Debt counselors and housing advisors can also help you find ways to protect against foreclosure.
