Foreclosure is a term many of us are familiar with. A property can go into foreclosure when the owner either falls behind or fails to pay debts related to the property. What are some ways to avoid this happening? Well, lets look at the reasons why it happens in the first place.
Failing to pay the mortgage is an obvious reason why a home will be foreclosed on. When this happens, the bank will generally take back the property.
The government has the ability to seize the property if the owner continuously fails to pay their property taxes.
Contractor’s bills. If these have not been paid, this is another reason that the home could go into foreclosure.
Homeowners association (HOA) neighborhoods house a large percentage of people throughout the United States. These neighborhoods require their occupants to pay homeowners association fees. Were you aware, though, that failure to pay your HOA fees could result in your home being foreclosed on? Be aware, also, that there are some States where Homeowners associations have a great deal of authority. This means that you might not get any assistance or protection from the government if you fall behind with these fees.
What can you do? While it’s impossible to predict what your circumstances will be years into the future, make sure you are very familiar with the laws and regulations in your specific area before you even start the home buying process. Get to know your rights as a home owner as well as the rights of any lenders or associations.