UNDERSTANDING CAUSES OF DISTRESS
While it is true that many Distressed Properties are the result of the Subprime Crisis, there are various other situations that can when combined with a Subprime Loan or even a Traditional 30 Year Mortgage, or on their own cause a Property and Homeowner to become distressed.
It is estimated that most American Families can only maintain their current living expenses for 60 days or less when inocme is interrupted for any reason.
Here are some of the reasons Properties become Distressed:
- Payment Increase or Mortgage Adjustment
- Loss of Job
- Business Failure
- Damage to the Property
- Death of a Spouse
- Death of Family Members
- Severe Illness
- Inheritance Debts
- Divorce
- Separation
- Relocation
- Military Service
- Insurance or Tax Increase
- Reduced Income
- Too much debt
- Incarceration