It may be the last thing that you want to hear. But, keeping up with your mortgage payments may not be enough to keep you in your house. Homeowners living in major cities have been faced with these three scary things that could push you out of your house.
Why you could lose your home even if you’ve been making mortgage payments
At the top of the list of scary things that could force you out of your home are property taxes. Penalties for making late property tax payments vary from state to state. Depending on where you live, you could be hit with interest on property taxes that you owe.
The interest may accrue monthly. This offers good incentive to catch up in your property tax payments as soon as possible. Fall behind on paying property taxes for a year or longer and local government could send someone from the sheriff’s office to your house to serve you papers.
A lien might be placed on your house. If you don’t resolve the issue in time, you could watch your house get sold. Even if the local government doesn’t sell your house after you fall to far behind in your property tax payments, your name could be published in a list of delinquent property tax payers.
More scary things that could take your house
Should you decide to sell your house and move out of an area that has high property tax rates, the fact that you’re on the delinquent list could scare away potential buyers. You also might decide not to put your house on the market, choosing instead to argue with local government officials about the injury that rising property taxes could cause to thousands, perhaps millions of people.
Rising interest rates and failing personal health could cause you to lose your home. Let your health fail and you may not be able to generate enough income to pay homeowners insurance, mortgage insurance or interest rates.
You might only have enough money to cover the principal on your mortgage. Similar to property taxes, rising interest rates could force you to spend $100 or more extra money to keep your house. To keep up with these costs, you could start falling behind in your mortgage.
Paying your mortgage may not keep you safe
Falling behind in your monthly mortgage payments isn’t the only thing that could cost you to lose your home. Rising property taxes, interest rates and health challenges could also see you get forced out of your house.
Buying a house in a jurisdiction that sharply increases the amount of property tax that you owe could also cost you a house. Changes in interest rates and your personal health could also significantly impact your ability to stay in your house. The only way out of the tight spot might be to sell your house, bring in a renter or start building a savings that you can fall back on should one of the three scary things that could take your house occur.