It Can Happen to Anyone, Contrary to Popular Opinion

Get this – foreclosure can happen to anyone.

I remember speaking to an editor from a popular financial magazine who said that his readers aren’t the ones affected by this crisis. “Our readers make a minimum of six figures, live in high-end neighborhoods, and have a high net worth”.

It does not matter – foreclosure is affecting everyone. People from all walks of life are falling into foreclosure for a variety of reasons. Divorce, the failing housing market, medical bills, job loss, increased daily expenses – these are elements that affect more than just those with four or five figure salaries.

Take, for example, Jose Canseco. For those of you who don’t follow America’s favorite pastime, he’s the player-turned-author who blew the whistle on steroid use in baseball. He’s worth millions, was living in a $2.5 million dollar home, and just WALKED AWAY from it.

Let me say it again… he just walked away.

He told reporters that he had a judgment on his home, and that “it didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else”.

What?

He currently has two books on the market, and it is reported that he is working on producing a movie out of both. He’s worth millions… but doesn’t understand that just because you walk away from a house, it doesn’t mean that you walk away from the debt that is owed. Not only do you now owe the past judgment, but also the monetary difference incurred by the foreclosure.

Do not walk away from your home. Do not ignore your debts. This will only compound the problem, not make it better.