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Home foreclosure rates on the decline

On Behalf of | Jan 17, 2019 | Firm News, Home Foreclosure

Owning a home is a monumental achievement of the American dream. Unfortunately for some Florida homeowners, that dream has proven to be more difficult than expected. Recent data indicates that some of those difficulties could be on the downward slide, with rates of home foreclosure less than they have been in several years.

Current mortgage delinquency rates are the lowest they have been since back in 2001, before the recession tanked the housing market. Mortgage delinquency — which includes foreclosure — is currently at about 4.1 percent, which is significantly lower than in Oct. 2017, when rates were at 5.1 percent. This shows that while it might currently be more expensive to get a mortgage than it was just 10 years ago, those who already have a mortgage are handling the financial side of things well.

So what is behind the low delinquency rates? There are a number of factors at play, including record low unemployment rates and higher average wages. Home prices have also increased since 2011, making it easier for homeowners to build home-equity wealth. It also means that there are fewer underwater mortgages.

While this is mostly good news for homeowners in Florida, a delinquency rate of 4.1 percent still means that some people are struggling. Whether faced with an unexpected job loss, a significant medical bill or other financial emergency, keeping current on a mortgage can be difficult, and it might not be that long before the home foreclosure process sets in. Homeowners have several options when faced with this situation. These include things like negotiating directly with a lender for more affordable payments or filing for bankruptcy to halt the foreclosure process and forge a path to renewed financial stability.

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