Fact: A financial hardship can affect any household, in any price range, in any city, in any zip code, and on any street.  There are a number of things that can happen that are simply beyond your control.  Sometimes these circumstances are unexpected. In any case, a financial hardship is always the pivotal point where paying the mortgage becomes a challenge.

• Increase in mortgage payment - When a homeowner has an adjustable rate mortgage (ARM), there is a point in time where the interest rate can either adjust up or down.  When the interest rate adjusts up, the mortgage payment may no longer be affordable.
• Job loss or unemployment - The loss of income can be very stressful.  Most times, a homeowner loses time because they are actively trying to find another job, and will often ignore the late mortgage in hopes of 'catching up' before the next payment is due.
• Business failure - For homeowners who are not salaried, but who are self-employed, when the business fails the inability to pay the mortgage is usually not far behind.
• Property damage - If a property has been damaged, and is also uninsured, the homeowner may not be able to afford to make the repairs.  In instances where the insurance only pays for a portion of the repair cost, the homeowner may use the money for basic living expenses.
• Death of a Spouse - The loss of income from the death of a spouse is another situation that can cause distress.  Regardless of whether or not the spouse was the primary wage earner, if any income was lost, then this can result in the inability to pay the mortgage.
• Death of a Family Member - The loss of any family member can be enough to cause emotional stress for the household, and impact the ability to make the mortgage payments.
• Severe Illness - Imagine having to choose between paying for your prescriptions and medical treatments, or paying your mortgage.  This is a decision that many homeowners who do not have health insurance have to face.
• Divorce - Often when divorce occurs, the sale of the home may be forced as part of the divorce decree.
• Inheritance - Usually when you hear inheritance, you instantly think of riches.  But sometimes people may inherit a home that they cannot afford.
• Separation - When a couple decides to separate, what will cause financial distress is when one spouse incurs the additional responsibility of having another household to maintain.
• Relocation - Companies may not be offering an attractive relocation package where they buy your home. Even when you take a new job after you've been laid off, if it means moving and relocating your family to pay the bills, some homeowners may have the difficult decision of leaving a home behind.
• Insurance or Tax Increase - Even if you have a fixed rate mortgage, property taxes or homeowner insurance costs can increase.  This can be especially tough on seniors who are living on a fixed income.
• Reduced Income - This is common for self employed homeowners.  When the business does not bring in the earnings and income to pay the bills, the hardship occurs.
• Too much debt - Excessive credit card debt can cripple a household.  When late payments cause higher interest rates, the amount of money going out can easily be more than the amount of money coming in, causing a homeowner to have trouble making their mortgage payment.
• Military Service - Service members who are PCSing, or who have their period of active duty extended also face the challenge of making mortgage payments.