Making your mortgage payments is the first priority for homeowners who want to get the most out of a home investment. Mortgage default rates in Colorado and the U.S. have seen increases as homeowners face economic issues that impact their financial well-being.
In cities like Denver, the housing and mortgage industries face risks of potential defaults due to issues related to the employment, income, and outstanding debts of borrowers. In some cases, Colorado homeowners sell their homes to avoid defaulting on their mortgages. This is often the best option for those who want to avoid the financial consequences of a default.
Knowing your options for avoiding a mortgage default secures you and your family’s well-being while letting you downsize your home and create a more stable financial plan.
Mortgage Default Rates
Colorado is one of 11 states that have seen a significant rise in property values. Although this might indicate a strong real estate market, it can also lead to a higher risk of default if buyers are unable to protect themselves from a downturn. The overvaluation of home prices in Colorado has been estimated at 5.5 percent. In addition, other U.S. states face similar issues that may suggest a potential rise in default rates.
Sustainable home prices are critical to the health of the real estate market and the prevention of mortgage defaults. Boulder, Fort Collins, and Greeley have faced unsustainable housing markets according to industry reports.
Consequences of a Mortgage Default
The housing crisis that occurred in 2008 left many Denver homeowners facing mortgage defaults and other financial challenges. In some cases, the value of homes fell below that of their mortgages, causing homeowners to be “underwater” and unable to sell their homes. Consumer debt and other issues caused many to default on their loans.
Mortgage defaults negatively impact your credit score, making it difficult to purchase another home in the future. Defaulting on your mortgage keeps you from securing a less expensive home, pushing you further into economic trouble. Poor credit ratings may also keep you from securing rental properties.
Avoiding Mortgage Default and Protecting Your Financial Future
Denver homeowners can choose to refinance their mortgages if they want to avoid a default. Loan modifications have eligibility requirements that you need to meet, and the process can be complex if you don’t know what you’re doing.
Keeping your home and refinancing it may give you a lower interest rate, but it may not provide the financial relief you actually need. Selling your home is an option that may require extensive research in order to ensure that you get a fair price for your home. But if you’re facing a default, you may be at the mercy of buyers offering far less than you expect.
That’s why selling your home as-is for cash can be the best option to avoid a mortgage default in Colorado. If you’re facing a default or are already in the process of one, you need to sell your home quickly and with minimal costs to you.
Selling your home to Homevestors is a fast and easy way to protect you and your family from a mortgage default. HomeVestors will buy your home fast, avoiding the costs and time required when selling a home through a realtor.
HomeVestors helps Denver homeowners create a more secure financial future by giving them a higher return on their home investment and protecting their well-being for the long term. Contact HomeVestors today to learn more!