In 2008 Wisconsin had over 13,000 filings for foreclosure, which is up more than 62% from 2007 and ranks Wisconsin as the 28th highest in the nation for foreclosure. Already in 2009 there are over 30,000 foreclosure filings and it is estimated that one in every 128 Wisconsin homes will succumb to foreclosure status. So why is this happening? Why are Wisconsin families being forced to foreclose their home? And, is there any other option?
What Happened? Reasons for Foreclosure in Wisconsin
Some of the most common reasons for foreclosure are as follows:
Job loss/ unexpected unemployment – in September 2009, the unemployment rate in Wisconsin was at 7.7% which is a slight increase from last month but nothing too substantial. Furthermore, compared to the 4.2% unemployment rate of last year, these numbers suggest there are still several challenges that workers face. What this means is that, although the global economic recession appears to be slowing down, jobs are actually not picking up and more and more Wisconsinites are finding that their temporary unemployment status is turning permanent.
Sudden illness or medical emergency – another common reason that more people are losing their homes to foreclosure is because they are struggling to overcome an illness or medical emergency and simply cannot pay for the bills. In 2007 there were over 4 million cases of injuries at work that cause problems in the financial sector. If you or the main income earner all of a sudden cannot work, then you could easily fall behind on your payments and end up in trouble with your mortgage.
Divorce / Loss of second income – 1 in every 2 marriages end in divorce and many more people split up every day causing not only a problem in their emotional life but also in their financial life. The reason is because, with a separation also comes a split in income. Furthermore, divorce proceedings can be extremely expensive and thus many people are struggling with even more debt once they have ended their marriage.
Unexpected Home Maintenance – another problem that Wisconsin families face is that their home is suddenly damaged. Although most families will have insurance that will cover accidents, there are certain problems that will need your out-of-pocket expenses. The fridge could break; the heating could crack down or the roof could leak. All of a sudden you are spending your monthly paycheck on home repairs instead of on the mortgage.
The Short Sale in Wisconsin Option
One of the best options to avoid foreclosure is to opt for a Wisconsin short sale. A short sale is a real estate transaction that occurs when the banks agree to take an offer on a house that is less than what you currently owe. They are willing to ignore the additional money you owe and you are able to sell your house without worrying about that dreaded ‘foreclosure’ status on your credit report. If you are having trouble making your mortgage payments, regardless of what the reasons are, you do not have to commit to the foreclosure status. A WI short sale is an option that just might work for you.
