While over-obligating yourself or unexpected repair bills may jeopardize your ability to keep up your house payments, the primary causes of foreclosure and bankruptcy are unanticipated personal crisis. More homeowners lose their homes because of illness, loss of employment or marital problems than all other reasons combined.
None of us factor these things into our plans for the future, but you should know about some of your alternatives if you find yourself in such a position. It is much easier to look at alternatives and plan an effective course of action before you are in trouble and in a state of anxiety and stress.
Sometimes you can see the trouble coming before financial problems begin. An advance notice of a layoff means the family income will be severely cut back or eliminated in the near future. A major medical operation or property repair bill may be more than you can afford to repay, even with a short term loan. You have to address the situation as soon as possible or risk losing your home.
There can be a number of local sources that can help you get over the hump. Churches and civic groups may have assistance programs or may know what is available. Non-profit organizations, particularly housing assistance groups or counseling agencies, ma y manage special assistance programs. State and local housing agencies are also places to inquire to help.
