What Are the Common Causes of Foreclosure in Florida?
Making the decision to purchase a home is not only a significant financial investment, it is also a personal investment. Due to the high cost of purchasing a home, many buyers take out a mortgage loan to help them cover the cost. While this loan may seem like a simple fix at the time, issues can arise if you are unable to pay back the loan. In the worst-case scenario, you may be one of the millions of Americans who face foreclosure each year.
The Law Offices of Daryl L. Jones, P.A has experience helping clients in Florida who are facing foreclosure. If you believe that you may be at risk for foreclosure, it is important that you understand what the common causes of foreclosure are in Florida.
7 Common Causes of Foreclosure in Florida
It is a common misconception that having financial difficulties is the only cause of foreclosure. The truth is that foreclosure can affect anyone for many different reasons. Some of the most common causes of foreclosure in Florida include:
Unemployment can happen when least expected, leaving individuals with a slew of bills to pay with no money coming in. Because many homeowners do not have expansive savings accounts, the sudden loss of a job can often lead to foreclosure.
While an adjustable-rate loan offers buyers attractive low payments and interest rates, these loans often catch individuals off guard due to the swift acceleration of the cost of payments alongside rising interest. When individuals cannot keep up with these payments, they are often faced with extensive debt that will force them to either declare bankruptcy or file for foreclosure.
Medical Expenses or Illness
Medical reasons are one of the leading causes of foreclosures in the United States. Medical reasons can lead to foreclosure in various different ways:
- Added expenses from medical bills
- Loss of a job due to illness or injury
- Added expenses due to ongoing medical care
Since most individuals do not have the savings to cover ongoing medical care, this can be a major contributor to falling behind in loan payments.
Credit Card Debt
Credit card debt can be easy to fall into. However, when credit card debt builds up, it can affect a person’s overall financial situation. When a person’s credit card debt becomes uncontrollable, it may result in their inability to pay their mortgage loan.
Divorce is a big change for any married couple. Due to the emotional and overwhelming process of going through a divorce, it is easy for finances to slip through the cracks. This can lead to missed payments and eventually a foreclosure in some cases.
Whether your relocation is due to a job or just because you needed a change, you may not have had enough time to sell your home. This may lead to the need to file for foreclosure.
Aside from paying for a mortgage loan or credit card debt, there are many other bills people have to worry about. If a person has too many bills piling up, they may find themselves falling behind on making payments towards their home.
Get Help from a Florida Foreclosure Lawyer
Buying a home is an expensive investment. To afford that home, buyers often opt to take a mortgage loan. However, when paying that loan back becomes more and more challenging, the buyers may face foreclosure. If you are at risk of foreclosure, it is crucial that you contact a Florida foreclosure lawyer who may be able to help you save your home.
The Law Offices of Daryl L. Jones, P.A has extensive experience helping clients facing foreclosure in Florida. Attorney Daryl L. Jones is dedicated to helping clients understand their options when it comes to foreclosure and how they can avoid it. To schedule a consultation, contact Attorney Jones here or call (305) 969-3602.