How Can Homeowners Facing Foreclosure Avoid it Altogether Because of Rising Home Prices

Armen Hareyan's picture
equity rich cash out avoid foreclosure

Those homeowners who face foreclosure may benefit from rising home prices and avoid foreclosure by selling their home. I saw a very good tip shared today in Active Rain forum, which I want to share with you.

Michelle Romero, a real estate agent from Phoenix, AZ, writes that today's' homeowners may be Equity-Rich and there is a benefit to it. She writes.

"You may be one of the fortunate equity-rich homeowners in today's real estate market. The number of homeowners nationwide with equity is growing. Rising home prices have prompted more owners to now be in the equity position as well. For homeowners facing foreclosure, they may be able to avoid it altogether and cash out with the sale of their home."

Ed Silva, a Realtor from Waterbury, CT, agrees with Romero, writing "For home owners that have had their homes at least 10 years there is a good chance that they have enough equity to justify the sale of the home.

Romero replied that this is correct and depends on the area. She adds that she has clients who bought in 2010 and have made $100,000. It's a remarkable time for those sellers.

In today's market homeowners facing foreclosure should definitely take another look at their home value. Perhaps this is also true for any homeowner. Another good option is refinancing to a lower mortgage rate for those homeowners who don't wish to sell right now, adds Barbara Todaro, a Real Estate executive from Franklin, MC. "It's security and the ability to sell when the they are ready," adds Todaro.

Comments

Thank you for the mention, Armen. For many homeowners, having equity in a home not only means they have the ability to sell, but they can also refinance and reduce their payment and/or the number of years of amortization, in order to pay the loan faster. There are options, when you have equity.

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