The real estate market has recovered greatly since the economic downturn. In fact, many homes that are currently in foreclosure might actually have some positive equity, which means homeowners might be able to avoid foreclosure. To be seriously “underwater” on your mortgage, debt must exceed value by 25% or more. The total of Americans underwater is now at 17%, which is down from 26% just one year ago.
When a homeowner can’t make their mortgage payments or falls behind, they often think their only option is to go into foreclosure. This is a dangerous assumption, and the latest numbers show there are better options out there. Since homes are gaining value, you could simply put your home on the market to get out from under the payments. The most important thing to know is the current value of your home, especially with values on the rise.
The best way to know the value of your home is to perform a Comparative Market Analysis, or CMA. A CMA is an evaluation of homes similar to yours that have sold recently in your area. This gives you an estimate of prices based on the current market, and it can be used as a guide to know the value of your home. Contact us today to learn more.