Home Equity is a Source of Financial Strength: experts agree there’s no chance of a large-scale foreclosure crisis like we saw back in 2008, and that’s good news for the housing market. As Mark Fleming, Chief Economist at First American, says:
“. . . don’t expect a housing bust like the mid-2000s, as lending standards in this housing cycle have been much tighter and homeowners have historically high levels of home equity, so there likely won’t be a surge in foreclosures.”
But even though the volume of homeowners at risk is very low, there is still a small percentage of homeowners who may be coming face to face with foreclosure as a possibility today.
The good news is there are alternatives available to help you avoid going through the foreclosure process, including:
• Loan modification
• Deed-in-lieu of foreclosure
• Short sale
But before you go down any of those paths, it’s worth seeing if you have enough equity in your home to sell it and protect your investment.
>>You May Be Able To Use Your Equity To Sell Your House
In today’s real estate market, many homeowners have far more equity in their homes than they realize due to the home price appreciation we’ve seen over the past few years.
If you’ve lived in your house for at least a few years or more, chances are your home’s value, and your equity, has risen dramatically. If your home’s current value is higher than what you still owe on your loan, you may be able to use that increase to your advantage.
>>Lean on Experts To Explore Your Options
If you’re a homeowner facing hardship, lean on a real estate professional to explore your options and see if you can sell your house to avoid foreclosure.
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