Homeowners Today Have Options To Avoid Foreclosure
Even with the latest data, experts agree there’s no chance of a large-scale foreclosure crisis like 2008. While there’s a slight uptick in foreclosure filings recently, the bigger picture shows numbers still well below a normal year for the housing market.
“The prospect of any kind of near-term surge in foreclosure activity remains low, with start volumes still nearly 40% below pre-pandemic levels.” – BlackKnight
For homeowners facing hardships, there are options to help avoid foreclosure. Bankrate suggests:
- Look into Forbearance Programs: For loans from Fannie Mae or Freddie Mac, you may be eligible.
- Ask for a Loan Modification: Your lender may adjust loan terms to reduce monthly payments.
- Set up a Repayment Plan: Lenders may offer a deferral or structured plan if payments are difficult.
You May Be Able To Use Your Equity To Sell Your House
Many homeowners have more equity than they realize due to rapid home price appreciation. Your mortgage payments also reduce your loan balance over time, increasing your equity.
“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.” – Freddie Mac
Lean on Experts To Explore Your Options
Partnering with a local real estate agent can help determine your home’s value based on recent comparable sales. This could allow you to sell your house and avoid foreclosure.
Bottom Line
If you’re a homeowner facing hardship, work with a real estate professional to explore your options or see if selling your house can prevent foreclosure.
