Why a Foreclosure Crisis Isn’t on the Horizon
With inflation still lingering and financial strain persisting for many, fears of a looming foreclosure wave are understandable. However, a closer look at the data reveals a different story.
Lenders Are Smarter, Borrowers Are Stronger
The reckless lending practices that fueled the 2008 housing crisis have been significantly tightened. Today’s borrowers are more qualified, with better credit scores and lower debt-to-income ratios. This increased financial stability translates to a lower risk of default.
Data from Freddie Mac and Fannie Mae confirms this trend. The number of homeowners seriously behind on their mortgage payments has been steadily declining. This indicates that borrowers are managing their financial obligations effectively.
Equity: A Safety Net for Homeowners
Another factor working against a foreclosure crisis is the substantial equity homeowners have built up. As Calculated Risk’s Bill McBride points out, this equity provides a cushion for many homeowners, allowing them to sell their homes and avoid foreclosure if needed.
The Bottom Line: No Sign of a Wave
While economic challenges persist, the current housing market landscape is vastly different from the pre-2008 environment. With qualified borrowers and a strong equity cushion, the likelihood of a significant foreclosure surge is minimal.
It’s essential to base our outlook on data and expert analysis rather than fear-driven speculation. The evidence clearly suggests that a foreclosure crisis is not on the horizon.
If you do come across a foreclosure you want to purchase we can absolutely help you finance it. We have a number of different financing options. Just give us a ring (269) 360-7109 or apply online!
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September Lunch and Learn: Ask the Appraiser
Appraiser Panel
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Does it often seem like appraisers seem to play by their own set of rules? Do you find yourself periodically signing the appraiser blues? Over the years we have seen all sorts of appraisal related issues cross our desks. Things such as repairs, marketability issues, short appraisals, unique properties, lack of comps, large tracks of land, the list goes on and on. During this lunch and learn event we are going to have the appraisers cornered and its YOUR opportunity to ask them questions! We are bringing in a panel of local and experienced appraisers. Jeremy Drobeck will be moderating the event and presenting the questions to the appraisers. We will also have some time for open Q&A during the lunch and learn. Its going to be fun, we are going to laugh, learn, and get some long needed answers!
Hot Topics We Will Cover
Here is a list of some of the things we will cover during the event: