Homeowners Facing Hardship: Exploring Alternatives to Foreclosure in Kansas City

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Despite recent data indicating a slight increase in foreclosure filings, experts reassure us that a large-scale foreclosure crisis akin to the one experienced in 2008 is unlikely. While headlines may draw attention to this uptick, the overall foreclosure activity remains well below pre-pandemic levels, providing a sense of relief for homeowners. As highlighted in a report from BlackKnight, foreclosure start volumes are nearly 40% lower than before the pandemic, indicating a low risk for most homeowners.

However, for a small percentage of homeowners in Kansas City, unforeseen hardships may place them at risk of foreclosure. In such situations, exploring alternative options becomes crucial. Here are some strategies outlined by Bankrate to consider:

  1. Forbearance Programs: Homeowners with loans from Fannie Mae or Freddie Mac may qualify for forbearance programs, providing temporary relief from mortgage payments.
  2. Loan Modification: Lenders may be willing to adjust loan terms to lower monthly payments and make them more manageable for homeowners facing financial challenges.
  3. Repayment Plans: Lenders can assist homeowners by establishing deferral or payment plans tailored to their current financial circumstances.

Additionally, homeowners should evaluate their home equity as a potential resource to avoid foreclosure. In today’s robust real estate market, many homeowners in Kansas City may have accumulated significant equity due to rapid home price appreciation. Leveraging this equity can be advantageous, as explained by Freddie Mac:

“If you have enough equity, you can use the proceeds from the sale of your home to pay off your remaining mortgage debt, including any missed mortgage payments or other debts secured by your home.”

To assess the equity in your home and explore selling options, it’s advisable to consult with a local real estate agent. They can provide insights into your property’s current market value based on recent sales of comparable homes in your area.

In conclusion, if you’re a homeowner facing financial hardship in Kansas City, seeking guidance from a real estate professional is essential. By exploring alternative options or utilizing your home equity to sell your house, you can potentially avoid foreclosure and safeguard your investment.

Author:

Chris Dowell, Dowell Family Team

Berkshire Hathaway HomeServices Alliance Real Estate

About the Author:

With over 30 years of experience, Chris Dowell is a seasoned professional in the Kansas City real estate scene. As a dedicated member of the Dowell Family Team at Berkshire Hathaway HomeServices Alliance Real Estate, Chris has been assisting Kansas Citians in buying, selling, and investing in real estate. Whether you’re looking to make a purchase, sell your property, or explore investment opportunities, Chris is here to guide you through the process.

Contact Chris:

Website: www.DowellFamilyTeam.com

Contact Information: https://solo.to/dowellfamilyteam

Dowell Family Team
Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

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