Avoid Foreclosure by Knowing Your Options

September 8, 2021

Couple meditating on their home and financial picture

Avoid foreclosure by knowing all of your options. Even though experts agree there’s no chance of a large-scale foreclosure crisis, there are a number of homeowners who may be coming face-to-face with foreclosure as a possibility. And while the overall percentage of homeowners at risk is decreasing with time (see graph below), that’s little comfort to those individuals who are facing challenges todayUnderstand Your Options To Avoid Foreclosure | MyKCMIf you haven’t taken advantage of the forbearance period, it may be time to research and understand your options. It starts with knowing what foreclosure is. Investopedia defines it like this:

Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Typically, default is triggered when a borrower misses a specific number of monthly payments . . .” 

The good news is, there are alternatives available to help you avoid having to go through the foreclosure process, including:

  • Reinstatement
  • Loan modification
  • Deed-in-lieu of foreclosure
  • Short sale

But before you go down any of those paths, it’s worth seeing if you have enough equity in your home to sell it and protect your investment.

Understand Your Options: Sell Your House, avoid foreclosure

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. (What is your home worth?)

In today’s real estate market, many homeowners have far more equity in their homes than they realize. Over the last year, buyer demand has been high, but housing supply has been low. That’s led to a substantial increase in home values. When prices rise, so does the amount of equity you have in your house.

According to CoreLogic, on average, homeowners gained $33,400 in equity over the last 12 months. The average equity on mortgaged homes is now $216,000 (see map below):Understand Your Options To Avoid Foreclosure | MyKCMSo, what does that mean for you? Over the past year, chances are your home’s value and therefore your equity has risen dramatically. If you’ve been in your home for a while, the mortgage payments you’ve made over time chipped away at the balance of your loan. If your home’s current value is higher than what you still owe on your loan, you may be able to use that increase to your advantage.

Frank Martell, President and CEO of CoreLogic, elaborates on how equity can help:

Homeowner equity has more than doubled over the past decade and become a crucial buffer for many weathering the challenges of the pandemic. These gains have become an important financial tool and boosted consumer confidence in the U.S. housing market.”

Don’t Go at It Alone – Lean on Experts for Advice, know your options

To find out what your house is worth in today’s market, work with a local real estate professional. We’ll be able to give you an estimate of what your house could sell for based on recent sales of similar homes in your area. Since home prices are still appreciating, you may be able to sell your house to avoid foreclosure.

If you find out that you have to pursue other options, your agent can help with that too. We’ll be able to connect you with other professionals in the industry, like housing counselors who can look into your unique situation and offer advice on next steps if selling isn’t the best alternative.

Bottom Line

If you’re a homeowner facing hardship, let’s connect to explore your options and see if you can sell your house to avoid foreclosure. You can avoid foreclosure by knowing your options.

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As a real estate attorney, I interact with hundreds of realtors. I wholdheartedly recommend David Worth. He is highly experienced, knowledgeable, and incredibly easy to work with. He goes above and beyond to negotiate for his clients and stays engaged throughout the transaction.
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As a real estate attorney, I interact with hundreds of realtors. I wholdheartedly recommend David Worth. He is highly experienced, knowledgeable, and incredibly easy to work with. He goes above and beyond to negotiate for his clients and stays engaged throughout the transaction.
Jennifer Bondy
We are excited to share our exceptional experience with Mr. David Worth in purchasing our new home at the Falcon Trace subdivision, near Hunter’s Creek here in Orlando. From start to finish, David demonstrated unparalleled professionalism, expertise, and dedication. Navigating the home-buying process can be scary and bring a ton of uncertainty,...
Pepe Mayor
We are excited to share our exceptional experience with Mr. David Worth in purchasing our new home at the Falcon Trace subdivision, near Hunter’s Creek here in Orlando. From start to finish, David demonstrated unparalleled professionalism, expertise, and dedication. Navigating the home-buying process can be scary and bring a ton of uncertainty, but David made it seamless and enjoyable. His patience and understanding were remarkable as we explored numerous properties to find our perfect home. We physically looked at 12 homes, and had him research online at least 5 more. He never pressured us to make a hasty decision, instead providing insightful guidance and support every step of the way. What truly sets David apart is his communication skills. David was always in touch with us either via phone, text or email. On the negotiation process, David tirelessly advocated on our behalf, ensuring we received the best possible deal. His knowledge of the market and strategic approach saved us both time and money, making us feel confident and well-represented throughout the negotiation process. Due to other competing commitments, we could not attend important milestones/engagements, such as the inspection of the home, and the appraisal. David attended both gladly and supervised the entire process. We can’t thank him enough for that. We are now proud homeowners in Falcon Trace, and we owe it all to David. His commitment to our satisfaction and their genuine care for our needs exceeded all our expectations. We wholeheartedly recommend David to anyone looking to buy or sell a home.
Pepe Mayor
I am writing this review to express my deepest gratitude and commendation for the exceptional service provided by our realtor Mr. David Worth. David helped us sell our Sawgrass property in Orlando Florida. Selling a house can be a daunting process, and it was even more challenging with the various drawbacks we faced with the potential...
Marco Mayor
I am writing this review to express my deepest gratitude and commendation for the exceptional service provided by our realtor Mr. David Worth. David helped us sell our Sawgrass property in Orlando Florida. Selling a house can be a daunting process, and it was even more challenging with the various drawbacks we faced with the potential buyers (the house had to be listed not once, but twice). However, David navigated these obstacles with utmost professionalism, skill, and perseverance. From the outset, David demonstrated an impressive understanding of the market and provided invaluable insights that guided us in preparing and pricing our home. His marketing strategies and price point recommendation were on point. This ensured that our property received maximum exposure and attracted numerous potential buyers. What truly set David apart was their unwavering commitment and dedication throughout the selling process. He maintained constant communication, keeping us informed at every stage and promptly addressing any concerns or questions we had. David communicates via text, email, and most importantly phone calls. He was always available when we reached out to him. As mentioned above, despite the challenges posed by selling process, David remained patient, calm, and resourceful, always finding solutions and negotiating effectively on our behalf. His expertise and experience (20+ years in Real Estate) shone through in every interaction, and his positive attitude made the entire experience much more manageable. Thanks to David’s hard work and determination, we successfully sold our house at a price we were satisfied with. We wholeheartedly recommend David Worth to anyone looking to buy or sell a home. He’s a true professional and a pleasure to work with. Even after our home sell, I know I can call David for advice. We are immensely grateful for his outstanding service and support.
Marco Mayor
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Daisy Ramirez
I'm thrilled to recommend David Worth for anything related to real estate. David really knows his stuff and runs his business with a lot of integrity and care. I've worked with him in several different settings, and he's always been super reliable and trustworthy. Whether you're collaborating on a project or just need solid advice, David is your go-to guy. He's dedicated, honest, and a real asset wherever he's involved.
Daisy Ramirez
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Page Leindecker
"David Worth of Worth Real Estate is a standout in the industry. His deep market knowledge, meticulous attention to detail, and dedication make him an invaluable partner in any real estate endeavor. Worth Real Estate embodies excellence, making every transaction seamless and successful. Highly recommend David for unparalleled service."
Page Leindecker
David Worth is a dedicated, trustworthy, and caring professional. He truly values his clients and is genuinely committed to their benefit. I have unfortunately worked with a realtor in the past who made it clear the sale, not my best interests, were the priority. I can confidently say you will never have this experience when working with David... I highly ...
Thrive Counseling (Guidance with Garcia)
David Worth is a dedicated, trustworthy, and caring professional. He truly values his clients and is genuinely committed to their benefit. I have unfortunately worked with a realtor in the past who made it clear the sale, not my best interests, were the priority. I can confidently say you will never have this experience when working with David... I highly recommend David and Worth Real Estate Company!
Thrive Counseling (Guidance with Garcia)
I worked with David as a Loan Officer, and he was fantastic to work with throughout the entire process. Was always accessible to keep communication flowing through all parties involved, always involved in the process ensuring his client's best interest and also helping along the process with any knowledge he had to make sure the process was kept smooth for ...
Khayan Martinez
I worked with David as a Loan Officer, and he was fantastic to work with throughout the entire process. Was always accessible to keep communication flowing through all parties involved, always involved in the process ensuring his client's best interest and also helping along the process with any knowledge he had to make sure the process was kept smooth for everyone in the transaction. Definitely looking forward to working with him again, and wouldn't hesitate a second ti recommend him as a realtor to any of my clients.
Khayan Martinez
I had the pleasure of working alongside David in a collaborative effort. This partnership was a fantastic experience, even though it had MaNy obstacles, we worked together to get this deal done for our clients. His expertise, communication and teamwork are exceptional.
Xitlali Guerra
I had the pleasure of working alongside David in a collaborative effort. This partnership was a fantastic experience, even though it had MaNy obstacles, we worked together to get this deal done for our clients. His expertise, communication and teamwork are exceptional.
Xitlali Guerra
Dave was very knowledgeable about selling with all the steps involved. He went over and beyond to help us with all the special hurdles we had to jump thru on this. No doubt I would use his service again if or when needed. Thanks Jack
jack dominy
Dave was very knowledgeable about selling with all the steps involved. He went over and beyond to help us with all the special hurdles we had to jump thru on this. No doubt I would use his service again if or when needed. Thanks Jack
jack dominy
David Worth is not only a real estate agent but a dedicated and caring professional who genuinely wants the best for his clients. He provides an outstanding service and I highly recommend him to anyone looking to buy or sell their home. Thank you David
Karen Chavez
David Worth is not only a real estate agent but a dedicated and caring professional who genuinely wants the best for his clients. He provides an outstanding service and I highly recommend him to anyone looking to buy or sell their home. Thank you David
Karen Chavez

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