The thought of losing your home is scary. Foreclosure can create chaos for your entire life. You may assume all the signs of foreclosure are obvious, but it is a process that can creep up on you if you are not careful.

Any life changes or troubles regarding finances may lead you closer to losing your home. Here are some red flags that foreclosure may be on the horizon.

Income reduction

A loss of income can come through a job termination, lay-off or demotion. This will directly impact your ability to make monthly mortgage payments.

Sudden expenses

Sometimes, life can take you by surprise. Circumstances that may lead to unexpected bills include illnesses, accidents and divorce.

Using savings and credit for essential expenses

You should save your credit card and savings account for discretionary spending and emergencies. If you find yourself withdrawing from your savings or maxing out your credit on things like groceries and utilities, you may be at risk of foreclosure.

Your adjustable mortgage increases

If you have an adjustable mortgage rate, you may be caught off-guard by the sudden increase in monthly payments. The steep bump in your mortgage may be untenable.

You cannot maintain your home

Homes require regular maintenance and repairs. Unfortunately, this can be costly. If you find yourself unable to afford home maintenance, this will likely spill over to your mortgage as well.

Deciding which bills to pay

If you do not have enough funds to pay all your bills each month, you may have to figure out which one is most important. This is a surefire sign that you should take action to protect your home.

Missing payments

Of course, one of the clearest indicators that the foreclosure process may begin is if you miss any mortgage payments. It may be easy to convince yourself that you can catch up, but this is more difficult than it seems.

Filing for bankruptcy can prevent foreclosure.