Richmond homeowners today have options to avoid foreclosure

Despite the latest figures published, specialists in Richmond, Virginia agree that a widespread foreclosure crisis similar to 2008 is unlikely to occur in the city. As detailed in a BlackKnight report, although there has been a slight increase in foreclosures, when looking at a broader perspective, we can see that we are still well below the average for a normal year in the real estate market.

The chances of an increase in foreclosures in Richmond remain minimal, and the number of foreclosure starts is still nearly 40% lower than pre-pandemic figures.

Obviously, this is quite positive news, as it indicates that the number of homeowners at risk today is significantly lower than usual. However, many of these homeowners see foreclosure as a possible reality. While this is something that can happen in any market due to various unforeseen situations, it is still important to address.

For those homeowners concerned about their future and who may face foreclosure, there are still strategies available to help them avoid the auctioning of their properties. These strategies include the following:

• Research forbearance programs: If your loan is with Fannie Mae or Freddie Mac, you may be able to qualify for such a program.
• Request a loan modification: Your lender may be willing to modify the terms of your contract and renegotiate your loan payment amount.
• Request a new payment plan: Check with your lender to see if a deferral can be arranged or if a new payment plan can be created.

Additionally, if you have enough equity in your property, consider selling it and protecting the investment you have made to date.

You may be able to use your equity to sell your home

Given the current real estate market conditions, many homeowners have more equity in their homes than they realize, thanks to the rapid increase in home prices in recent years. This means that if you’ve owned your home for a while, its value has likely increased. When combined with the mortgage payments you’ve made so far, you’ll notice that your loan balance has decreased. This combination may have improved your equity, and if you notice that your home’s current value exceeds what you owe, this is a situation you can leverage to your benefit by selling your property and using the profits to pay off your debt and accumulated interest.

Rely on experts to assess your options

To avoid foreclosure, make sure to determine your current equity accurately. To do this, it is advisable to seek the help of a real estate agent from one of the many available in the city of Richmond. They will provide you with more precise details on the potential selling price of your home based on recent sales of similar properties in your area.

Conclusion

So, if you are a homeowner going through financial difficulties and believe you may enter a foreclosure process, the best recommendation is to consult with a real estate professional to explore all these various options, and consider selling your home to avoid foreclosure.

Foreclosures available:

• New York: 1200
• Los Angeles: 950
• Chicago: 800

By Elias DaSilva | September 19, 2024.