Since the beginning of the foreclosure crisis, millions of American homeowners have weathered with the process of fighting to keep their homes. The past several years have been unquestionably frustrating for these individuals and their families. Thankfully, it seems that the tide is finally turning for good. And it is turning so quickly that some individuals currently battling foreclosure are actually no longer in a position to worry about losing their homes.
Many homeowners first learned that they might be at risk of foreclosure after they realized that their property was underwater. When a house is underwater, the owner of the house owes more on his or her mortgage than the house is currently worth financially. Having a house dip underwater does not mean that the property will be foreclosed upon, unless the homeowner cannot make payments on time. However, home owners cannot generally sell or refinance underwater properties in the event that they need to do so.
Homeowners who may have entered the foreclosure process underwater may be surprised to learn that the housing market has recovered to the point that many properties formerly underwater now have positive equity. In addition, recent data released by RealtyTrac indicates that many homes that have never been underwater but are at risk of foreclosure for other reasons have also increased their percentages of positive equity in recent months.
If you are facing foreclosure, you may now have enough positive equity in your house to turn your situation around. Please consult an experienced attorney with your questions in regards to this issue.
Source: The Washington Post, “More homeowners no longer need to be in foreclosure, and they may not even know it,” Dina Elboghdady, April 18, 2014