Many Kansas City homeowners have heard of the term “house poor,” which is simply used to describe homeowners who have a wonderful home that they are simply not able to afford.  By using a bulk of their income to make the monthly mortgage payments, some Kansas City homeowners are forced to cut back in other areas, or utilize more credit in order to make ends meet.  Having a beautiful home will only last so long as you can manage the monthly mortgage payments.  Once the time comes when you simply can no longer keep up, you may be facing possible foreclosure or the need to file for bankruptcy or other debt-elimination options.

Being “House Poor” – A Chain Reaction

If you find yourself unable to make all of your monthly bill payments, including, but not limited to, utilities (water, gas, electricity), medical expenses, credit card bills, automobile and other personal loans, and unpaid taxes, it is time to make a change.  If you have a steady income, and you mathematically should be able to make all of your monthly bill payments aside from your mortgage payment, then you may simply be taking too much on by owning a home with an outrageous monthly payment.

If you live in a house you are truly unable to afford, this can lead to you missing other important bill payments.  By missing these payments, you are establishing a negative track record on your credit report that may make it difficult for you to obtain credit in the future.  Continued missed payments may then result in collection activities.  You may find yourself stuck making the decision to choose your home over other financial matters in your life.  You may be able to keep your home by allocating a bulk of your income towards your mortgage payment, but you a digging yourself a bigger whole each day by neglecting other debts.

If the debt becomes unmanageable, filing for bankruptcy may be the best option available to you for eliminating your debt.  It may turn out that you will have to sell your home, and find a home that is within your means.  As difficult as it may be to live in a home that you may not consider to be your “dream home,” the decision to take on a mortgage that you cannot keep up with will lead to negative consequences that are simply not worth it.

Bankruptcy allows many homeowners to keep their home and eliminate their debt simultaneously.  If it turns out that you are able to manage your mortgage payments after eliminating all of your dischargeable debt through bankruptcy, then you may not be “house poor” after all.  But if you find yourself struggling with your mortgage payments even after eliminating your debt, it may be time to find a home that will allow you to live with more financial freedom.

Contact Kansas City Debt-Relief Attorney Douglas Breyfogle to Schedule a Free Consultation

 Finding the home of your dreams in Kansas City is certainly a wonderful feeling, however, that feeling may not be long-lasting if you are not able to keep up with the hefty mortgage payments.  If your mortgage payments are beginning to take over your life, you should consider seeking the advice of a legal professional who can help you formulate a plan to make your mortgage payments more manageable.  With more than twenty years of experience providing bankruptcy and debt-relief services to his clients, Kansas City Bankruptcy and Debt-Relief Attorney Douglas Breyfogle has the skill, reputation and desire to help you manage and eliminate your debt.  Owning a home is a blessing, but it is also an extreme challenge that has led to numerous foreclosures over the past decade.  Take what steps you can now to avoid foreclosure down the line.  Contact Kansas City Bankruptcy and Debt-Relief Attorney Douglas Breyfogle today by calling (913) 742-8700 to schedule your free confidential consultation.