Buying your own home, as well a being a good investment, can give you the freedom to fix it up the way you want and give you an added feeling of security that a rental cannot. However, there are certain circumstances that could cause you to lose that investment. Let’s look at a few of the reasons a home might go into foreclosure:
Most people know that a property is foreclosed on when the owner falls behind on mortgage payments which means the bank will take back the property. But what are some other reasons a home is foreclosed on?
Failure to pay debts related to the property such as contractors’ bills, and government property taxes are also reasons a home might be foreclosed on. Failure to pay property taxes means the government could take the property from the owner.
A large portion of people throughout the United States live in Homeowners Association (HOA) neighborhoods. Anyone living in an HOA neighborhood is required to pay Homeowners association fees. Failure to pay these fees could also result in a home being foreclosed on. There are also certain States where Homeowners associations have a good deal of authority which means that if you fall behind on these fees, you may not be entitled to any help or protection from the government
While it is impossible to know what your future circumstances may be, one way of protecting yourself from foreclosure is, before you even purchase a home, become familiar with all laws and regulations regarding your rights as a homeowner as well as the rights of lenders and associations.