WIth all the latest headlines regarding recession and slowing housing market, it may be no surprise people may be worried about foreclosures being the forefront moving into 2023.
However, most experts agree there is a very little chance that foreclosures will dominate the market like we saw back in the 2008 housing crash. So, why is that? Hi, I am Krista Mashore with Homes by Krista and ExP Realty. According to Mark Fleming, chief economist at First American, “Don’t expect a housing bust like the mid-2000’s, as lending standards in this housing cycle have been much tighter and homeowners have historically high levels of home equity, so there likely will not be a surge in the foreclosure market”. This is good news for most homeowners, but there still is a small percentage who may be coming face to face with a possibility of foreclosure. If you are facing difficulties it is important to understand as a homeowner there are options available to you with home equity being on top. So, what is home equity? Equity is the difference between what you owe on your mortgage and the home’s current market value. And although we have seen prices come down this year, home prices are still relatively high which means there is a good chance you have a lot of equity. Simply put, if your home is worth more now, you may be able to sell it and use the equity to pay off your mortgage and any late payments, thereby avoiding foreclosure. If you are a homeowner that could be facing some potential foreclosure hardships, let’s connect so we can explore all your options, find out how much equity you may have in your home and see if selling is the best option for you.