MINT HILL, NC – It has been a strange year filled with jobs disappearing, homeowners struggling to pay bills, and many other issues. With the pandemic hitting hard for nearly a year now, it’s possible a housing crisis could hit sooner rather than later.
Mortgage forbearance programs have been used to help homeowners postpone bills and remain afloat. However, the rules are about to change to these programs, unless something is done. Come April 2021, many homeowners might be in for a bit of a reality shock.
Some believe the moratoriums in place have caused a false sense of security as more people depend on these to remain in their homes. Many of these rules will end in March and with more than 2 million borrowers still 90 days or more behind on the mortgage, this may spell disaster for the housing market.
The one good thing when comparing the current issues with 2007 is the housing prices. They are much stronger today than they were then and the market is currently super-hot. This does mean it could be the right time to sell before losing a home to foreclosure.
Selling Now to Avoid Foreclosure Later
For those homeowners hit the hardest by the pandemic, selling Mint Hill real estate now could be the way to avoid losing it to foreclosure. The market is very hot, which means homes for sale in Mint Hill, NC, and across the country are going fast for high prices.
Is Selling the Only Option?
No. There are other possible options to avoid foreclosure if you’ve been using one of the forbearance programs. Government-backed loans will likely not require a lump sum payment to get caught up and other institutions may be willing to adjust the forbearance terms to help out borrowers.
It’s also possible to negotiate a lower interest rate or refinance your mortgage to get caught up. Some lenders may be willing to extend the length of the mortgage contract and lower payments, as long as the borrower has found regular employment.
Many homeowners will still likely face foreclosure with the number of borrowers in December 90 days or more past due up 400% compared to 2019. Regardless of the situation, it’s time for homeowners to start considering what’s next. Acting now, whether it’s selling your home or renegotiating the terms of your mortgage gives you a better chance to come out on the positive side of things compared to waiting. It’s not a smart idea to depend on the government to continue forbearance programs, as this may not happen. Take action now and make sure you don’t lose your home to foreclosure if a housing crisis does happen.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | firstname.lastname@example.org | www.1stchoicepropertiesinc.com