News headlines are talking about foreclosure rates going up, but when you look at the big picture we’re still below what we’d typically see in a normal year. Experts agree we won’t have a housing market crash like in 2008.
A report from BlackKnight explains: “The prospect of any kind of near-term surge in foreclosure activity remains low, with [foreclosure] start volumes still nearly 40% below pre-pandemic levels.”
Of course, this doesn’t mean that individual homeowners won’t face situations where they’re at risk of foreclosure. This can and does happen in any market.
If you’re facing foreclosure, you have options to help you avoid it! Let’s take a look:
Option 1: Utilize a forbearance program.
If you have a federally-backed mortgage like an FHA, VA, USDA, Fannie Mae, or Freddie Mac loan, you may be able to get a forbearance. If you’re in a financial crisis and behind on payments, a forbearance may allow you to pause or reduce payments temporarily. Basically, it puts off foreclosure proceedings and gives you a chance to get caught up.
Option 2: Ask about a loan modification.
A loan modification is a permanent change to the terms of the loan (like the interest rate or the loan length). Your lender might agree to adjust your loan terms to bring your monthly payment down to something that will work for you. Typically, they expect you to be able to stay current on your payments with the new arrangement.
Option 3: Ask for a repayment plan.
This option is geared toward people who missed a payment or two due to a temporary issue. A lender may agree to a special plan for paying back those missed payments. This is not a long-term solution for someone facing continuing financial issues.
Option 4: Sell your house for cash.
This last option makes sense if there’s enough equity in your home to cover your mortgage and any back-due payments when selling. Due to the rise of home values over the past few years, you may have more equity in your home than you expect, even if your home is distressed! If your home’s current value is higher than what you still owe on your loan, your equity can help you avoid foreclosure. If you’re able to do a no-commission sale, this really helps maximize your profit.
Bottom line:
We don’t expect to see any huge rise in foreclosures. However, this doesn’t mean individuals won’t face foreclosure due to their specific situation. If you’re struggling to pay your mortgage regularly, you have options!
If selling seems like the best option for you, a no-commission sale with MarketPro Homebuyers is one of the best ways to maximize your sale and get yourself back to financial stability. You may be able to pay off your mortgage and any missed payments and be able to get yourself set up in a more sustainable housing situation—even if your house is distressed! With a no-commission sale, more money stays in your pocket.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania, Florida or Georgia, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
