While there are split views whether there will be more foreclosures this year or not, experts say that this will be unlikely, especially if homeowners know who to protect their investments.
Here are 3 graphs showing how different this year is versus 2008:
Based on the charts from NA, MBA. and ATTOM, many homeowners faced foreclosure in 2008 after the bubble. Fortunately, there is no housing bubble today. Most buyers today are more qualified, which makes them less likely to fall behind on their loan payments.
Another factor is lending standards. Right now, purchasers are screened more thoroughly. The standards are higher compared to those set around 2006-2008. Though this may sound harsh for some, this could actually be a good thing because this is how sellers are able to weed out those who are just looking around versus those who are serious and decided. Buyers can also assess themselves better if they are ready to commit or if they need to work on their finances further.
In a recent survey from MBA, it shows that foreclosures have declined. Based on the data they have gathered, the volume of homeowners at risk of foreclosure has been significantly lower compared to 2020.
On the other hand, there is still a small percentage that are at risk of foreclosure. In this case, it is important to know what options are available to prevent this from happening. Some alternatives are:
- Deed-in-lieu of foreclosure
- Loan modification
- Short sale
Protecting Your Investment Using Your Equity
Before going through the alternatives, you may want to consider using your equity to protect you from foreclosure. In today's real estate market, many homeowners fail to realize that their homes may have already increased in value, especially since home prices have increased over the years. In most cases, those who have already lived in their homes for some years may enjoy higher home values compared to the amount they owe.
How to Find Out Your Home Value
To know how much your home value is, it is best to look for a trusted Realtor® with ample experience and connections in your local market. Realtors® who are keen to provide good service to their clients will reach out to their connections and look for the best options so they can guide you properly.
For instance, in Long Island, NY, Kyle Kelly of The Island Wide Team leads one of the best real estate teams providing step-by-step guidance about real estate. May it be about home buying or home selling.
Call or Text: 631-831-0912
FB Messenger: m.me/KKellyNY
Personal Email: KKellyNY@gmail.com
Team Email: firstname.lastname@example.org
YouTube: The Island Wide Team
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