Even with the most up-to-date information, experts are in agreement that a major foreclosure crisis similar to the one in 2008 is unlikely to occur. Sure, there's been a slight increase in foreclosure filings making headlines lately, but overall, the situation is still much better compared to what we would typically see in a stable housing market year. This insight is highlighted in a report by BlackKnight.

““The prospect of any kind of near-term surge in foreclosure activity remains low, with start volumes still nearly 40% below pre-pandemic levels.”
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— BlackKnight

That's great to hear! It indicates that the number of homeowners facing risk is much lower than usual.

It's important to note that while most homeowners are doing well, there is a small percentage who might be dealing with the possibility of facing foreclosure. This could be due to unexpected hardships in their lives, which, sadly, can happen in any market.

If you're a homeowner going through tough times, there are still ways to avoid foreclosure. Check out an article from Bankrate that delves into some options to consider.

• Look into Forbearance Programs: If you've got a loan from Fannie Mae or Freddie Mac, you might qualify for this program.

• Ask for a loan modification: Your lender might be open to changing your loan terms to lower your monthly payment to a more manageable amount.

• Get a repayment plan in place: If you're having trouble making your payment, the lender could possibly help by arranging a deferral or a payment plan for you.

Have you thought about whether you have enough equity in your home to sell it and protect your investment? It's something worth considering.

You May Be Able To Use Your Equity To Sell Your House

In today's real estate market, a lot of homeowners may not realize that their homes have gained more value than they think because home prices have been going up quickly in recent years. Basically, if you've been in your house for some time, chances are it's worth more now. On top of that, the payments you've been making on your mortgage have been reducing what you owe. This combination could have increased your equity. So, if your home is now worth more than what you still owe, you could benefit from this. Freddie Mac explains how this situation can work in your favor.

““If you have enough equity, you can use the proceeds from the sale of your home to pay off your remaining mortgage debt, including any missed mortgage payments or other debts secured by your home.”
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— Freddie Mac

Lean on Experts To Explore Your Options

If you're curious about how much equity you've built up in your home, consider teaming up with a nearby real estate agent. They have the knowledge to provide you with an idea of your house's potential selling price by looking at recent sales of comparable properties in your neighborhood. Selling your house might be a way to prevent foreclosure.

Bottom Line

If you're going through a tough time as a homeowner, reach out to a real estate agent for help figuring out what you can do, or find out if selling your house might be a way to prevent foreclosure.