It is estimated that most American Families can only maintain their current living expenses for 60 days or less when income is interrunpted for any reason.
1.- Payment Increase or Mortgage Adjustment
This is the lastest reason for distress in today's market and one that you will spend considerable time reviweing it.
2.- Loss of Job
When an individual loses employment, the loss of income is most often immediate, and very quicly financial distress can occur and seem insurmountable.
3.- Business Failure
For a small business owner, the devastation of a business failure is often followed by the inability to pay mortgage payments and the loss of their Home.
4.- Damaged To Property
Many times insurance companies do not cover the full amount of damage to a property and homeowners are unable to make repairs. Some homeowners have to use insurance funds to survive and find new living arrangements.
5.- Death of a Spouse
The death of a spouse is devastating to a family, and if the person was also one of or the only wage earner, this will almost always cause financial distress.
6.- Severe Illness
Severe illness, and the medical bills involved along with the time that it takes away from a family's productivity can cause bill to be missed and homes to go on into distress.
7.- Inheritance
Rarely does someone think of an inheritance as means for distress. However, heirs are left to pay mortgage bills, utilities and maintenance that they did not expect. Imagine a son who makes 60k a year whose parents left him a home with a $ 700,000 mortgage payments on a $1.5 million property, He will quicly needs to find a payment solution or liquidate the property and satisfy the mortgage.
8.- Divorce
It goes without saying that divorce is one fo the most common reasons for Financial Distress in the Real Estate market. Most of the time,they do the following: One party buys the spouse 50 % if it's possible, or list the house for sale.
9.- Death of family members
The death of a family member, regardless if they are a wage earner or not, can throw family into emotional and financial turmoil.
10.- Relocation
Homeowners do not always have control over where they live; many times relocations are necesities not choices. This can quickly cause uncexpected distress since very few homeowners can support two households for any sifnificant length of time.
11.-Separation
When a couple decides to separate even though they are not actually divorcing, the cost of maintaining two households can cause the loss of a primary residence.
12.- Military Service
Except for the relief provided in very specific situations by the Serviceperson Civil Relieft Act (SCRA), military service can lead to unexpected financial issues. Servicepersons, who have had their periods of active
13.- Insurance or Tax Increase
For many homeowners just the increase in taxes on an annual basis or the increase in a insurance payment can cause a family to lose a home or go into financial distress.
14.- Reduced Income
If a person is in a commision based business (like real estate or sales agent) and the economy suffers, often times their income suffers. Also many businesses are reducing employee compensations to make up for lost revenues that corporatins have suffered.
15.- Incarceration
There is times when the wage earner for some reason ended up in jail and the family goes into financial distress and they need to sale their home.
16.- Too much debt
For a family with credit card debt, even minor increases in their interest rate can make the difference between paying all their bills or having food on the table.