What are default and foreclosure and what can you do to avoid them?
We’re starting a three-part mini-series called The Three d’s of Real Estate. The three D’s are default, death, and divorce. These are some of the most emotional events you can go through and adding a real estate transaction on top of that can be tough. Today I’m focusing on the first D: default.
Reach out to a trusted Realtor to help you get factual, up-to-date information. The CARES Act stopped foreclosures for those who could not pay their mortgage. It was supposed to expire at the end of June, but it got extended to the end of July. When it’s lifted, many people are going to be in default on their mortgages, meaning they are behind on their payments. If they didn’t go through the proper channels spelled out by the CARES Act, their homes could also be in foreclosure.
We’re going to see people lose their homes, so stay on top of your situation, and make sure you have a conversation with a trusted advisor if you know that you’re behind. If you are in default, chances are good that you’ll have plenty of equity if you sell your home because prices are going up. We don’t predict any big changes after the CARES Act ends.
If you have questions about this and are wondering how it applies to you or if you’re looking to buy or sell, reach out to us. We can get you answers and give you peace of mind.