So Many Heads in the Sand-Why Foreclosures Happen

How can you expect the problem to go away?

In the past I would often wonder why anyone would ever allow their home to go into foreclosure. I mean, there are options, you can sell your home if you have to, so then WHY would you ever get to the point of foreclosure? I couldn’t understand why they would stick their head in the sand and expect the problem to go away.

In the last few years my own experiences have led me down a path of enlightenment on the reasons that lead people to foreclosure and empathy has opened up the gates to understanding.

It is NOT because:

-the homeowners are deadbeats

No one wants to lose their home.

THEN HOW?

In no particular order, here is what my experience has been:

—Divorce—
Many times a failed marriage is the also the source of a failure to pay the mortgage. Very often the spouse left in the home is the caretaker of any children and may have been the last to suspect they would wind up in this situation. They will try everything they can to stay in place and make ends meet. They have already experienced the failure of their marriage and are resistant to admit publicly that they are failing to keep their home.

—Lost Job—
In this economy this has become more and more prevalent. Many people try to hang on in hopes that they will soon find a new position, but hope can’t float the bills and they cannot get caught up. No one wants to admit that they didn’t have enough savings to get by.

—Illness or Injury—
Prolonged illness or injury in the family causes a financial burden in both expenses and lost wages.

—Sub-prime Lending—
Some people made the bad decision to take a sub-prime loan that has adjusted upwards and made their payment unreasonably expensive for them.

—Home Values—
Many people who bought in the peak of the market and would sell now feel that they are stuck because their mortgage balance is higher than what their home value reflects.

STRESS

Put yourself in their shoes, try to understand how scary and stressful it is to be in a situation where you will have to move and will probably lose your home.

Here is the call to action:

Empathize. Be an arbiter of understanding, education and kindness to these people.

Reach out to your community and teach them that these situations are not only very common these days: they are often solvable. Show the people in your area that you aren’t only interested in selling the McMansions and “easy” properties…you are a professional working to help all homeowners.

Educate yourself about the options for distressed homeowners and share your knowledge freely. Help others to understand that they may not have to suffer foreclosure.

Be there. Remember that this could be your friend, your family member…this could be YOU.

Help these people to bring their heads out of the sand and view the horizon in front of them.