If you’re worried about losing your home to foreclosure, don’t be.
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One of the things I’ve spoken about a lot in my video blog is the fact that headlines do way more to terrify than clarify. Did you know that over 57% of all homeowners in the U.S. have more than 60% equity in their properties? I’ve provided a CoreLogic chart at 0:50 in the video to give you a more in-depth look at this statistic.
This means you likely fall into that very same category. If you’ve struggled to keep up with your mortgage payments due to perhaps a job loss or medical expenses, don’t think you have no other choice but to ignore your bank and let your house fall into foreclosure. Under federal law, you have the right to defer your mortgage for up to 360 days. You can also use your equity to pay off your debt.
This isn’t 2008; the government is on your side.
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This surplus of equity has also given options to homeowners who aren’t under some form of financial distress. As Mark Fleming, chief economist at First American, recently explained: “As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home—the wealth effect of rising equity. In today’s housing market, fast-rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.” Since there are more buyers than sellers out there, you’ll have greater leverage if and when you put your home on the market.
I have one more interesting quote to share with you, this time from Black Knight: “The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.” This means very few homeowners are at risk for foreclosure, credit damage, or any other problems caused by COVID-19.
The bottom line is this: Don’t hide from your situation. This isn’t 2008; the government is on your side.
If you’d like to talk more about your options or have questions about this topic, don’t hesitate to reach out to me. I’d love to help you.