Before COVID-19, the economy was booming. Mortgage rates were low, the unemployment rate was low, and things were looking up. Then March came around, and the economy took a dramatic hit. Since then, things have started to improve. But one thing is inevitable; homes will begin to foreclose. Keep reading to learn more about the expected foreclosure crisis.
A Rise in Foreclosure
Although the new administration has signed executive orders that extended the pause on evictions and some foreclosure, the United States can still see an increase in foreclosures. The executive order is set to last until the end of March. The pandemic will certainly not be over in April, and the economy will not be back to pre-pandemic conditions at that time either. That can mean that the U.S. can see an increase in home foreclosures.
Different This Time
When people think about a foreclosure crisis, they automatically think about the 2008 housing crisis. Luckily, this time around, things are different. American homeowners have built up large reserves of home equity. That was not the case in 2008. Unlike the Great Recession, home prices, on average, continue to rise. Those who still have jobs are shopping for bigger homes in less crowded cities and towns to wait out the pandemic.
What You Can Do
If you’re struggling to make mortgage payments, reviewing your options is the first step. Discuss loan modifications or refinancing to avoid a foreclosure on your home. This option is usually much cheaper for a lender to modify or refinance than it would be to foreclose, so everyone is happy.
If you decide that the best option is to sell your house, be sure to work with an experienced realtor. It’s common for homeowners to be harassed into selling their property at a discount or fair value to investors. With an experienced realtor, you can avoid this from happening to you. They’ll help you get competitive bids, and you can be sure that you’re getting paid what your property is worth.
Considering Refinancing Your Home?
If you’re considering refinancing, selling, or re-titling your home, let Armour Title help. Our dedicated staff will help you with an array of title-related services. We’re here 24/7 to answer your questions and make it our mission to make the process as convenient as possible. Don’t go through the process on your own; contact us today to get started together.