The housing market has faced turbulent waves over the last few years and many homeowners have been left stranded in mortgage debt. Continued economic pressure has kept a tight hold on many homeowners wallets, leaving some with few options to avoid foreclosure. A new report suggests that one factor has taken the lead role in causing foreclosure increases around the country.
Money troubles plague most Americans in today’s economy, but one issue is becoming the thorn in America’s side, employment. Unemployment and underemployment are now the chief complaint by Americans when asked about their debt burdens, foreclosure proceedings or general financial troubles. Companies are laying off tenured employees and college graduates can’t find decent employment to sustain their loan payments.
A report of 2010 statistics revealed that 60 percent of homeowners facing foreclosure reported unemployment and underemployment as the reason for their inability to maintain their mortgage payment. 12 percent cited money management and financial planning problems, while 9 percent said it was divorce or death of a spouse that lead them into mortgage default. Medical bills also made the list with 8 percent of homeowners reporting their medical expenses left them without enough resources to maintain their mortgage.