For most American families, their home is their most valuable asset and the cornerstone of their financial security. We imagine that the only way to lose a home is to default on the mortgage. The idea that a relatively small, manageable debt of just a few thousand dollars could trigger a foreclosure seems impossible. But it happens with alarming frequency. A complex and often predatory system exists where small, unpaid debts—like a property tax bill or an HOA fee—can be sold to third-party investors. These investors can then use the legal system to charge exorbitant fees and interest, and ultimately, foreclose on the property. The stories of how families lose their homes over what started as a small debt are a terrifying wake-up call.
Here’s how this devastating process works and what you can do to protect yourself.
