A fluctuating economy typically has implications on the personal financial status in individual households across the country. Many people are currently worried about possible foreclosure, especially in certain counties, such as Bay County and Clay County, Florida, which are among those with the highest risk at this time. The housing market has reportedly not surged in these areas as it has in other parts of the country.
Why do lower home values increase risk of foreclosure?
If people are able to purchase lower-cost homes, it does not necessarily mean they will be able to keep up with mortgage payments. Studies show that people in certain counties throughout the country, including the Florida counties referred to here, have lower median incomes that make them vulnerable to foreclosure. While they may be able to purchase a home, keeping it is another issue, especially if an unforeseen circumstance arises, such as a reduction in income or a medical emergency that sparks a financial crisis.
East Coast regions are particularly vulnerable
While several Midwest regions, such as several counties in Illinois rank high on the list of areas at risk for foreclosure, the most vulnerable areas are located along the East Coast. In Clay and Bay counties in Florida, 7% and 5% of properties were being foreclosed at the end of the first quarter in 2021. In some cases, it is possible to halt the foreclosure process, such as if a homeowner is eligible for a certain type of bankruptcy.
Seek clarification of foreclosure laws
It is not uncommon for a homeowner to get behind in his or her mortgage payments if an unexpected financial crisis arises. There may be several options available to keep from losing one’s home. A first logical step to take is to request a meeting with an attorney who is well-versed in foreclosure issues so that he or she can review one’s case and recommend a best course of action.
