How People End Up in Foreclosure: Common Pitfalls and Preventable Patterns

Foreclosure often doesn’t happen overnight. Instead, it usually results from a combination of pressures many face:

• Job Loss or Income Drop – even part-time shifts missing a few months can catch up quickly

• Medical Emergencies – big bills create long-term gaps

• Divorce or Separation – two incomes turn into one, and expenses rise

• Poor Communication with Lenders – without early outreach, people lose access to loan‑mod options

• Unexpected Maintenance or Tax Bills – routine but costly surprises

Prevention Tips:

1. Communicate early with your lender

2. Ask about forbearance or loan modifications

3. Keep an emergency fund, even if small

4. Seek financial counseling before the worst hits

At Mercy Management, we’ve seen people recover before foreclosure by starting the conversation early—and when it’s too late, we help you recover what’s still there.