Navigating Mortgage Troubles: Tips to Avoid Foreclosure and Protect Your Home Equity

Even though you might hear some talk about foreclosures going up a bit lately, experts say we're not heading for a crisis like the big one in 2008.

Actually, the numbers are still much lower than what we'd expect in a regular year for the housing market. According to a report from BlackKnight, the chance of a bunch of foreclosures happening soon is pretty low. That's because the number of people having trouble paying their mortgage is much lower than usual.

But, there are still some folks who might be worried about losing their homes. Life can throw unexpected curveballs, right? For those in a tough spot, there are options to avoid foreclosure. Here are a few things you can look into, as explained in an article from Bankrate:

1. Forbearance Programs: If your loan is from Fannie Mae or Freddie Mac, you might qualify for this program.
2. Loan Modification: Your lender might be willing to change the terms of your loan to make your monthly payments easier.
3. Repayment Plan: Your lender could set up a plan to delay payments or make them more manageable.

And here's another thing to think about: Do you have enough equity in your home to sell it and save your investment?

You might be able to use the money you've built up in your home over the years to sell it and pay off your mortgage. If your home's value has gone up since you bought it and you've been making regular payments, you could have some extra money to work with. Freddie Mac explains:

"If you have enough equity, you can use the money from selling your home to pay off what you owe on your mortgage, including any missed payments or other debts tied to your home."

To figure out how much equity you have, talk to a local real estate agent. They can give you an idea of what your home might sell for based on similar homes in your area. It could be a way to avoid foreclosure.