My brother-in-law who is a bankruptcy attorney is seeing a lot of people with foreclosures looming. In almost every case they have done everything to hang onto their home. One couple was making their payments, and buying their groceries and gas on credit cards. It simply became too much for them. They are now going to stop making their house payments and find someplace else to live.
He says most of his clients have some combination of lost job, or sickness that results in income problems. A lot of them have simply overspent, but I was surprised by how many that were sick, and had no savings.
