Could you lose your home? Unfortunately, this is a situation that many homeowners face, since rising interest rates and job losses often make it hard to pay bills. If you see these red flag signs in your own situation, you need to take some action:

1) You may lose your job in the near future or lose a source of income in some way. One of the most common reasons people lose their homes is because they lose their ability to bring in a steady paycheck.

2) You have multiple debts. If you are living paycheck to paycheck because of personal loans, credit cards, and other debts, you are more at risk of serious personal financial problems.

3) You have little or no savings. No emergency fund means that if you do lose your source of income you will have a difficult time making your monthly payments.

4) You have little or no equity in your home. If you have equity, you can often refinance. However, with no equity this is very difficult.

5) You are watching the adjustable rate on your mortgage increase. A low interest rate may have made your home affordable but when that rate increases rapidly, it can quickly make your home unaffordable, especially if your income does not keep pace.

6) You have problems with your credit rating. An imperfect credit can make it harder to refinance your mortgage when you need to. Problems with your credit rating can also mean that your home loan is less affordable.

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