Will we see more foreclosures in 2023, and are we heading into a crash? With all the latest headlines regarding the recession and the slowing housing market, it’s no surprise that many people are worried about foreclosures being at the forefront moving into 2023. However, most experts agree there is very little chance that foreclosures will dominate the market like we saw back in the 2008 housing crash. So, why is that? Hi, I am Beth Tamminga with eXp Realty.

According to Mark Fleming, chief economist at First American, he says, “Don’t expect a housing bust like the mid-2000s, as lending standards in this housing cycle have been much tighter and homeowners have historically high levels of home equity, so there likely will not be a surge in the foreclosure market.”

This is good news for most homeowners, but a small percentage may be coming face to face with the possibility of foreclosure. As a homeowner under challenging situations, it is critical to understand that options are available to you, with home equity being on top. So it’s essential to identify and understand what home equity is. Home equity is the difference between what you owe on your mortgage and the home’s current market value. And although we have seen prices come down this year, home prices are still relatively high, which means there is a good chance you have a lot of equity.

Simply put, if your home is worth more now, you may be able to sell it and use the equity to pay off your mortgage and any late payments, thereby avoiding foreclosure. If you are a homeowner facing some potential foreclosure hardships, let’s connect so we can explore all your options to determine how much equity you may have in your home and see if selling is the best option for you. We’re always here to help, so give me a call. Don’t try to navigate these markets on your own; that’s why you have experts like us supporting you along the way. Give me a call. I'm happy to help!! I'll lead you the way home!