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Losing your home due to debt


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Do you know anyone who lost their home because of debt? It's one of the scariest things to me, because I would hate to lose my home because of any kind of debt. I imagine though, you'd have to go really far in debt to be forced to forfeit your home. How do you make sure that you never lose your home? Should I save money on the side just in case? I know I shouldn't worry as I'm not in debt, but I am one to always worry these days. 

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You would need to not pay your mortgage or property taxes for this to happen. 

Your mortgage should be no more then 33% of your income so if good financial practices are being followed the risk should be pretty low. 

We always suggest having 6 months of living expenses just sitting around somewhere incase the worst case happens and you find yourself without income for awhile you are still able to get by. 

Saving is important and something that is not focused on enough in todays age. Good conservative financial practices lead to a nice stress free life where you do not need to worry about these things to much. 

Make sure when paying your bills that your mortgage payment is your top priority as the roof over your head should be pretty high on the list of important things that need to be kept. As a landlord I know people do not always put their housing payments first which has never made sense to me... Keep the priorities in order. 

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My parents struggled for a good 10 years before walking away from the home I grew up in. This takes a lot to happen and they usually allow you a lot of time to sort things out. There are plenty of options to save you from losing your home but ideally, you never land in a position where you need to consider those options. 

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  • 3 weeks later...

My parents lost their home from debt as well. They overspent and continued using credit cards even when they had no need for them. Once the 2008 crash hit, everything went downhill fast. They had to let the bank take the house in 2011 I believe it was. They have been stuck renting every since. 

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On 7/16/2021 at 3:23 PM, Sophia said:

My parents lost their home from debt as well. They overspent and continued using credit cards even when they had no need for them. Once the 2008 crash hit, everything went downhill fast. They had to let the bank take the house in 2011 I believe it was. They have been stuck renting every since. 

Sounds a lot like what happened to mine. I know so many people now that lost their homes, especially since COVID19. I hope and pray to never be in this kind of position. I actually have been put off from buying a home because of it but I have since changed my mind on that. 

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On 7/17/2021 at 4:16 PM, Mila said:

Sounds a lot like what happened to mine. I know so many people now that lost their homes, especially since COVID19. I hope and pray to never be in this kind of position. I actually have been put off from buying a home because of it but I have since changed my mind on that. 

It is easy to not want to take the risk. In this day and age, it is a risk for a lot of people, even couples who both work! I wish we could still get houses in stellar areas for under $100k but I seldom see any and when I do, they need a good $100k+ in repairs! 

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  • 4 weeks later...
On 6/30/2021 at 10:41 PM, Justin89 said:

Do you know anyone who lost their home because of debt? It's one of the scariest things to me, because I would hate to lose my home because of any kind of debt. I imagine though, you'd have to go really far in debt to be forced to forfeit your home. How do you make sure that you never lose your home? Should I save money on the side just in case? I know I shouldn't worry as I'm not in debt, but I am one to always worry these days. 

Well, before you get into a debt, you should make sure your assess your current financial position to ensure you can actually afford the debt. That is why banks will do a creditworthiness check to ensure that you have enough assets to handle the amount of loan or mortgage your are applying for. 

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Prevention is better than cure. Rather than getting into a debt that you cannot manager, you'd rather assess your situation before buying or taking the loan. This will help ensure you don't loose it in future. 

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