Use Equity to Avoid Foreclosure

We can help you use equity to avoid foreclosure.  Experts reassure that there is little chance of a foreclosure crisis like we saw back in 2008, thanks to tighter lending standards. However, as is typical in a “normal” real estate market, there is still a small percentage of homeowners who may be facing foreclosure.  The good news is that there are alternatives available to help you avoid going through the foreclosure process, including:

  • Reinstatement
  • Loan modification
  • Deed-in-lieu of foreclosure
  • Short sale

But before you go down any of those paths, it’s worth investigating whether or not you have enough equity in your home to sell it and protect your investment. We can help you determine if you can use equity to avoid foreclosure.


Use Equity To Avoid Foreclosure by Selling

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation.

In today’s real estate market, many homeowners have far more equity in their homes than they realize due to the home price appreciation we’ve seen over the past few years. You’ll recall from a previous post that home sales prices in the Kansas City Metro have risen 9.6% in the last year alone!  This means that if you’ve lived in your house for at least a few years or more, chances are your home’s value and equity has risen dramatically. In addition, the mortgage payments you’ve made during that time chipped away at the balance of your loan. If your home’s current value is higher than what you still owe on your loan, you may be able to use that increase to your advantage.


Lean on Experts To Explore Your Options

To find out how much equity you have, ask a local real estate professional to provide you with a Comparative Market Analysis (CMA).  A CMA will detail an estimate of what your house could sell for based on recent sales of similar homes in your area. You may be able to sell your house to avoid foreclosure!

If you determine you must pursue other options, your agent can help with that too. They’ll be able to connect you with other professionals in the industry, like housing counselors, who can investigate your unique situation and offer advice on next steps if selling isn’t your best alternative.

Contact us if you would like us to connect you with a local real estate expert.


The Takeaway

If you’re a homeowner facing hardship, lean on a real estate professional to explore your options and see if you can sell your house to avoid foreclosure.

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