Mortgage Default Rate in Illinois
The mortgage industry is still recovering from the housing crisis that occurred in 2008. Mortgage default rates in Illinois have a huge impact on the economy, and they can be used as in indicator of current and future growth.
In cities like Chicago, homeowners continue to face the possibility of defaulting on their home mortgages due to a wide range of economic factors. This can increase mortgage default rates in Illinois and lead to secondary economic challenges.
For many, there are few options that are available to provide the financial protection they need and to avoid the consequences that result from a mortgage default. Selling your home can provide you with the financial relief you need when facing a default on your mortgage. Understanding the best way to sell your home can maximize the return on your investment.
Mortgage Default Rates
Rising mortgage default rates are a key indicator of more serious economic issues. Owners are unable to make mortgage payments when they face unemployment, reduced wages, or an inability to recover from a financial setback.
U.S. mortgage default rates experienced a decline in 2016. Although rates had risen to 11% in 2010, the national mortgage default rate went down to 4.8 percent. But this may not be a sign that homeowners are free from the risk of default.
Second-mortgage loans have also seen a rise in default rates, as more homeowners fell behind on their mortgage payments in 2016. In Chicago, foreclosure rates are high when compared to other parts of the country. It’s been estimated that one home is foreclosed for every 944.
The Consequences of Default
Chicago homeowners may still be reeling from the 2008 housing crisis, in which many residents found themselves in homes that were worth less than their mortgages.
Not being able to sell their homes caused many Chicago homeowners to default on their mortgages. This has had a serious impact on credit scores and the ability to secure future loans.
Can Selling Your Home Protect You From Default?
Illinois residents may not consider selling their home when facing a default. But it may provide the financial relief needed to resolve debt while avoiding the short- and long-term consequences of a default.
Loan modifications are typically considered as a way to reduce mortgage debt. Although an adjustment in your mortgage terms can result in a lower interest rate and monthly payment, it may not be the best financial move depending on your circumstances. Selling a home can have its limitations. It requires time, money, and energy to sell a home. Also, realtor commissions and closing costs can reduce the amount you actually receive once your home is sold.
If you’re facing a mortgage default, or if you’re already in the process of defaulting on your home loan, Homevestors will buy your home for cash giving you immediate financial relief.
The process makes the sale of your home convenient while saving you the costs that are typically associated with a home sale through a realtor. Selling your home to Homevestors may be the move that puts you in a stable financial position now and in the future. Contact us today to learn more!