Foreclosure cases happen every day, by the thousands. But you can also find some trends regarding when they tend to be more common than at other times. For example, back in 2009, there was a wave of foreclosures when the housing bubble burst and the United States entered a recession.
There are those who are now predicting that another wave of foreclosures is on the horizon. One reason for this is that they know there are distressed mortgages going back 12 months or more that simply haven’t been dealt with yet. They expect that this is going to lead to numerous foreclosures when there are no other options for homeowners in these situations. But why else could it be happening?
Is there a recession coming?
One of the big questions to ask may be whether or not a recession is coming to the United States. If earnings decline, that means that there some homeowners will no longer be able to afford their mortgages. It’s not that those mortgages were a bad financial option at the time that they took them, but simply that their financial situation will change due to job loss or wage reduction.
Another thing to consider is that home values soared at historic rates over the past few years. If home values do end up dropping, that could mean that there are people who will now be underwater, having paid far more than their home is worth just to buy it in the first place.
Examining your options
This is just a prediction at this point, but it shows that the housing situation could become complicated. Make sure that you carefully consider all of your options.