Sudden and shocking numbers out of a recent report by Black Knight showing that there is a large upswing in recently acquired mortgages that are already underwater. “More than 25% of 2022 FHA/VA purchase mortgage holders have now dipped into negative equity, with 80% having less than 10% equity.” Quite often there’s not enough equity in their home to sell if a job or income loss arises and the homeowners need a quick sale.

These loans are a victim of an overaccelerating hot seller’s market followed by a swift mortgage rate increase. This year in the U.S., mortgage rates rose higher and faster than any other time in U.S. history. Those rising mortgage rates have cooled the purchase frenzy that had swept the nation over the past 2.5 years. Although this correction was necessary, it exposes some of the more vulnerable borrowers to the risk of default.

Even though these pre-foreclosures aren’t making a lot of headlines in the news, there are still folks dealing with these mortgage challenges. In October, new past due borrowers did rise by 12.6% with mortgages more than 90 days delinquent also rose 2.1%.  I am certified and educated in helping those homeowners who may be experiencing some type of hardship and would love to offer alternatives that they might not even know exist.

If you or someone you know might be worried about their current or future situation, my team and I are here to help.  Schedule a consultation today.