Why we WON’T see as many foreclosures in today’s real estate market as compared to 2008?
BIGGEST DIFFERENCE: Homeowners have equity in their homes!
In today’s market, homeowners have equity in their homes, so they are not in negative equity or what some called underwater. In 2008, many homeowners owned a house that was worth less than the mortgage they had on the home. Many decided they would just stop making their payments and walk away from the house.
ANOTHER BIG DIFFERENCE: The supply of homes for sale are down!
Today, supply of homes for sale are way down. If you are in the market to purchase a home, you know what I’m talking about. Depending on where you live, some sellers are receiving several offers within days of putting their homes on the market. Twelve years ago, the market was flooded with homes available. Which means more homes for sale will drive the prices down. Making it a buyer’s market; and the golden rule of economics is still true today-supply will always influence price. Today there are fewer homes for sale which means sellers will get top dollar for their homes.
FINAL BIG DIFFERENCE: Home prices are appreciating!
In 2008, home prices were depreciating. And since they owed more, the only option was to stop making their payments and wait for the bank to serve foreclosure notice.
These differences allow banks to feel comfortable giving homeowner options to stay in their homes Today, the banks have different options to help a homeowner stay in their home. Refinance Repay, Repayment Plan, Deferral Program, and Modification programs are just to name a few.
So, in a nutshell, the foreclosure forecast will not look like the foreclosure homes we saw back in 2008!
If you are homeowner looking for options to save your home from foreclosure, please do not hesitate to contact me by using the form below. You definitely have options to keep your home.
