Even as more recent data becomes available, experts agree that a major bankruptcy crisis like the one in 2008 is unlikely. While the headlines focus on the recent slight increase in foreclosure filings, the big picture is that the numbers are still lower than what we see in a typical year for the housing market. The BlackKnight report explains:
“The prospect of any kind of near-term surge in foreclosure activity remains low, with start volumes still nearly 40% below pre-pandemic levels.”
That’s good news. This means that the number of homeowners at risk is very small compared to the norm.
However, the percentage that could face foreclosure is small. Finally, some owners may face unexpected challenges in life, which unfortunately can happen in any market. There are still options available to help these homeowners avoid the foreclosure process. If you’re having trouble, Bankrate’s article lists some things to look into.
Take a look at our foreclosure programs: If you have a Fannie Mae or Freddie Mac loan, you can apply for this type of program.
Request a loan modification: Your lender may want to modify the terms of your loan to lower your monthly payment to a more affordable level.
Make a payment plan: If you can’t pay, your lender may set up a deferment or payment plan.
And there is one more thing to consider. Do you have enough equity to sell your home and protect your investment?
You can use your home equity to sell your home.
In today’s real estate market, with home prices rising rapidly in recent years, many homeowners hold more equity than they realize. This means that the value of your home may have increased if you lived in it for a while. Additionally, any mortgage payments you made during this time will affect your loan balance. This combination may have increased your wealth. And if the current value of your home is higher than the amount of your loan, you can use that increase to your advantage. Freddie Mac explains how this can help:
“If you have enough equity, you can use the proceeds from the sale of your home to pay off your remaining mortgage debt, including any missed mortgage payments or other debts secured by your home.”
Trust our experts to explore your options
Work with a local real estate agent to find out how much equity you have. We can give you an estimate of what your home might sell for based on recent sales of similar homes in the area. You can sell your home to avoid bankruptcy.
