Owning a home brings a feeling of financial stability. Taken as a profitable investment, a large number of individuals invest in home to avail the benefits, a homeownership brings. Many homeowners try hard to turn their house into a home by performing the upgrades and repairs. Unfortunately, sometimes the ownership is questioned and this is the time when owning a house becomes a nightmare. There are many reasons why people lose their home ownership but usually it is because of the following reasons.
Financial issues are one of the main causes of loss of home. The most common reason is not being able to repay the mortgage. As per the law, the lending institutions hold the right to repossess the home in case the homeowner is unable to pay off the loan as per pre-agreed contract. Although you might not be evicted instantly, lenders issue notices before the actual foreclosure. However, in some states, you might be allowed to stay in a house until the deed is finally transferred to a new homeowner.
Failure to pay the mortgage can be because of various reasons like loss of job, change in job, medical emergencies and other emergencies that deter your financial capability of paying the loan on time. In some cases it can also be possible that change in mortgage rates have made it impossible for the owner to afford the monthly payments anymore.
Another major financial reason that causes loss in home is homeowner’s failure to pay the taxes. When you owe IRS money, they do not hesitate to seize your property to compensate for the amount you owe. Besides including the money that you owe initially, late charges, interest and other fees is also included in the tax payment.
Whatever the reason might be, losing a home because of lack of finances can be a stressful situation. In such a case, it is better to have a word with your lender to find a way out.
Even though the chances of this happening are rare, illegal ownership is sometimes the reason why people lose their home. There is a possibility that a seller falsify the documents, claiming the property to be what it actually is not. Under such circumstances, the court can probably identify that the sale is illegal, voiding the entire sale.
In some other cases, the house is transferred to the owner through a will, which is later figured out as a misinterpreted one. In such a case, owner’s claim can be false.
However, title searches while buying a home can be beneficial to avoid this fraud. It not only protects you from title disputes, but also makes sure to check that there are no misinterpretations and other liabilities that can later result in disputes or problems.
Other less common reasons
If the law enforcement finds out that your home was purchased using illegal money or if it was used for any criminal activity, they can confiscate your house.
To avoid losing your home, make sure to indulge in correct research to choose a right home and be sure of your financial capability before closing the deal.
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