How You Can Lose Your Home to Foreclosure
When I think of the word "foreclosure", I think of Disney cartoons that I saw when I was a kid. Okay, I'm going to date myself squarely at my 40-something years, but when I was a kid, we'd watch "The Wonderful World of Disney" on Sunday nights. After the main "feature", there would often be a cartoon to fill up the time slot. I remember a memorable cartoon where the town Sheriff was kicking Mickey and Donald and Pluto out of their home. It was high jinks and a lot of laughs.
Unfortunately, it's not like that in real life.
You can lose your home to foreclosure, and it's easier than you'd think. The most obvious way is to quit paying your mortgage. You will get past due notices, and then foreclosure proceeding notices, and finally the sheriff really will help you to remove your belongings from the home. Interestingly enough, we seem to be in a period when mortgage defaults are on the increase. This could mean a rise in the number of foreclosures in the near future.
There are 5 other ways to lose your home: don't pay your taxes; file bankruptcy; lose your home when you default on other debt, like credit card debt; failure to pay homeowners dues if you are part of an HOA; and, illegal activity.
You might be surprised to find out that you can lose your home by breaking the law. The American Civil Liberties Union contends that 80 percent of homeowners who have had property forfeited by the federal, state or local government have never been convicted of a crime, rather law enforcement officials only need to prove probable cause that the homeowner either used the property in committing a crime or purchased the house through funds created through illicit behavior.
Something to think about.