A Housing Crisis in America!

There is trouble on the horizon…but there is hope.

There is a silent crisis churning in our country.

I’m not talking about anything politics, religion, race, or health. There are significant problems in all these areas, but they get a lot of air time.

What I’m talking about isn’t getting noticed by as many people as it should. Yet.

I’m talking about the crisis of housing and the rise of delinquent mortgage payments.

The Reality

Unemployment rates dramatically increased in the wake of Covid-19. Even with government financial stimulus packages, many found themselves unable to pay. There are 3.2 million people today in the US that are behind on their mortgages. In Florida alone, that number is as high as 52%.

Financial institutions presented people with the opportunity to defer their payments for a time, which has helped people during a difficult time. These measures have also kept the housing market going strong. However, many experts fear that the last few months of increased prices is an illusion.

The Problem

As time goes on and government assistance comes to an end, mortgage deferral rates will likely increase quickly. People are likely to lose their homes, their investments, and watch their future dreams crumbling along with the houses they can no longer afford. The disadvantages people will face after this can be hard to come back from.

And people aren’t lazy by depending on the government. Many have children at home and struggle to find child care during these times of limited contact. Many industries have taken a considerable hit in production and demand, leaving many people out of work and looking for a career change.

Not everyone has the right skills to make a change, while others find themselves pushed out of a job market with millions of people looking for work. It’s hard to make payments when you don’t have an income!

How it Happens

Upon missing a payment, banks will start to reach out to the offending individuals asking for payment. As many won’t have the funds to pay now or in the near future, banks will begin to take action to recover their losses.

Homes will be repossessed and sold. If the market doesn’t allow for profits from the sale, former owners will still owe money to the bank, including fees from the house’s sale.

Deferring payments increases their overall costs, and debt quickly balloons until it’s entirely out of control.

If you are worried about your mortgage but don’t know where to turn, keep reading.

What You Can Do

There are some options available to you.

For one, if you know you won’t make a payment, you can reach out to your bank or mortgage holder. It’s possible to work out a deal with them. Banks don’t want to see you lose your home as it means their investment suffers too.

After deferring mortgages, though, not all institutions will look favorably upon more delay. Banks have bills to pay, as well!

Others are finding help from family or their surrounding community. If you know people who can help you out or have people in your life offering assistance, don’t hesitate to accept their offer. Losing your home is a devastating setback, both your finances and the overall health of your family.

You can also turn to a professional for help. There are some, like me, who know how to work within the system. I can offer you tips and advice to help you understand how to keep your home. I can also provide options for selling your property to help you get out from under the burden of your debt.

If you are interested in my help, book an appointment with me by clicking here. Let’s talk.