There are many things that have been known to cause foreclosures. As a Realtor in Nashville TN who has bought foreclosure homes, as someone who have talked with so many people who owns foreclosure homes and with other experiences I have in the real estate business, I have found out the things which caused foreclosures in almost every state. Certain events in everyone’s life which happened like death in the family or divorce can cause foreclosures in even the best housing markets, but the most frequent reason is the negative equity.
How the death in the family and divorce can cause foreclosures of your Brentwood real estate market:
Death in the family- When the head that supports all the financial needs of the family dies that can quickly result in foreclosure. More ideas can be found in http://nashvillerealestateadviser.com/brentwood-tn-real-estate/.
Divorce- the husband and wife get so busy during the divorce process that they missed to pay mortgage payments and their other financial obligations in the house. what usually happened between them that causes foreclosure is that one of them wants to stay and refuses to leave, and the other one refuses to pay.
What leave the owners of the home to have their properties for foreclosure are the declining prices. Declining prices leaves the owners with negative equity and negative equity means that as a homeowner you owe more money than the value of your home. You loaned for money, you have afforded the home, but then the prices for real estate declined, so your home property value declines too. Negative equity is known as the number one cause of foreclosure.
Negative equity as a Franklin Tennessee Realtor is a really unfortunate situation that any homeowner can experience. It is referred to as being “UNDERWATER”. When a homeowner is in this situation, the options of “non-underwater” homeowners such as the option of selling the home to pay for the remaining mortgage payments and earn some profits from it or the option of refinancing the home aren’t available for them. Underwater homeowners have foreclosure only as their way out not unless they can talk it out with their lenders. If the lender agrees to make changes to the payment plans, the homeowner might be able to save the home for foreclosure. Most of my clients check on http://nashvillerealestateadviser.com/franklin-tn-real-estate/ as a reference.
Now, regarding the declining prices, the economic crises are what causing it. One example is what happened during early 2000. Banks and other home loaners put buyers in homes they could not otherwise afford, and then crises happened. There were millions of people who lost their jobs and the entire economy was down. These resulted for people who loaned to be unable to pay their mortgage payments so what happened next are prices dropped by 50% or more in the hardest hit areas. As prices declined, foreclosures rose.
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