Foreclosures are becoming more common with each passing month. The problem is that the consequences associated with foreclosures can be long-lasting and financially devastating. With all the ups and downs we have experienced with the economy, homeowners are looking for a better solution that will help them bounce back much faster than if they were forced from their homes. With the number of foreclosures continuing to rise, it is becoming clear that short sales and other options are needed to help homeowners overcome these financial obstacles.
Cost of Living Increase
An increase in the cost of living means that our wages don’t go as far as they used to. The things we need the most, especially when it comes to food, have doubled, and in some cases tripled, in price. It’s harder to feed and care for our families. The more we are forced to spend on necessities, the less we have available for house payments, insurance, and other home-related expenses. The higher the cost of living goes, the higher the risk of falling behind on mortgage payments.
Minimal Rise in Wages
Even though the cost of living has continued to rise, the wages of workers across America have shown only a small increase. In fact, they are just slightly higher than what they were before the COVID pandemic gripped the nation and sent things into a financial tailspin. The rise in the cost of materials and utilities is the reason for the price hike for the items we purchase. Profits go back into creating more products instead of paying employees. Pay increases are minimal and wages are being stretched further and further than ever before.
Foreclosures on the Rise
Florida, California, and Texas have the highest number of foreclosure starts. Once the process begins, it can be difficult to dig back out of the hole. The effects of a foreclosure can last for many years making it difficult to obtain any type of credit. The financial loss can be overwhelming after you have put so much effort into buying the property. Many homeowners get caught up in the cycle of missed payments and late fees, not realizing there are things they can do to protect themselves. Homeowners do have options they can fall back on. Having a short sale is one option that can give them peace of mind.
Short Sale Prior to a Foreclosure
Short sales and loan modifications are both viable options if you can start the process prior to your lender starting foreclosure proceedings. Loan modifications take time and may not completely stop the foreclosure process. Short sales, on the other hand, can provide you with benefits other options do not. This includes relocation assistance, minimizing the impact of a foreclosure on your credit, and repairing your credit much sooner than later.
Working with a company like iShortSale, will help you make the best use of the options you have available to you. They can evaluate your unique situation and help you find the right solution that will work best for you. Selling your home on a short sale will take time, but if you get started soon enough, you will be able to eliminate your mortgage debt before the foreclosure process is in full swing.