The Connection Between Medical Debt and Foreclosure

Medical bills are a leading cause of foreclosure. Learn how to manage debt and protect your home during health crises.

Unexpected medical bills often lead to financial distress — and, in many cases, foreclosure.

Why It Happens:

  • High medical costs drain savings.

  • Loss of income during illness makes mortgages harder to pay.

  • Collection accounts damage credit, limiting financial options.

How to Cope:

  • Negotiate hospital bills or request charity care.

  • Seek mortgage forbearance during treatment.

  • Consolidate medical debt at lower interest rates.

Protecting health shouldn’t mean losing a home — but homeowners must act quickly to safeguard both.