Why Foreclosure Rates Spike After Economic Recessions
Recessions often trigger waves of foreclosure. Learn why economic downturns hit homeowners hardest and how to prepare.
Haidee
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Economic downturns expose financial vulnerabilities — and foreclosure is often the result.
Why It Happens:
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Job losses reduce income stability.
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Businesses cut hours or freeze pay.
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Adjustable-rate loans reset during uncertain markets.
How to Prepare:
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Build an emergency fund covering six months of expenses.
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Refinance to fixed-rate mortgages.
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Avoid over-leveraging during boom periods.
Recessions may be cyclical, but preparedness turns uncertainty into opportunity.
