The Thruth About Foreclosures
If you've been following the news lately, you may have seen a headline or two about an increase in foreclosures and bankruptcies. Although the numbers have increased slightly since last year, experts don't believe a wave of foreclosures is coming.
⓵ Most homeowners have a lot of equity in their homes.
Due to the rapidly rising home prices over the past few years, most homeowners are sitting on a cushion of equity. Therefore, if they do fall on hard times, they can tap into that equity or sell and pay off any expenses instead of facing foreclosure or bankruptcy (and may even walk away with a profit).
⓶ There are not many serious delinquencies.
Since the housing market crash in 2008, lending standards have tightened significantly, leading to more qualified buyers who can afford to make their mortgage payments. This has resulted in very few homeowners falling seriously behind on their mortgage payments.
On top of that, due to the tighter lending standards, there are very few delinquencies. Basically, fewer people are seriously behind on their mortgage payments right now.
In today's media-driven world, headlines often paint a broad picture of the real estate market, but here's the truth: real estate is hyper-local. What's happening nationally typically does not reflect what's happening in our area.