Foreclosure in Utah: Many are Still Losing Homes

House Being ForeclosedOver the last years, foreclosures in Utah have improved. From being one of the top five in 2011, it’s now ranked 21st, according to Bankrate.com. It fared better than other popular states, such as New York and California.

However, it still means foreclosures are more common in Utah than in other thirty states. Furthermore, there’s only a slight change in percentage from 2016 to 2017. RealtyTrac even has a grimmer picture. At least one in every 1,504 residents will lose their home. Pre-foreclosures have also gone up by 1.3% compared to the previous year.

Why People Are Losing Homes

There are many factors that can lead to a foreclosure, but the topmost reason remains to be unaffordability.

An individual may not be able to afford a home due to a variety of causes. These include job loss and bigger expenses, such as healthcare or tuition. A family may lose their breadwinner, and the spouse cannot afford to pay the home anymore.

People with fixed-rate mortgages may already have to deal with a variable rate, which is less predictable. It can go up significantly in any given month. There are also others who want to refinance their home, but cannot qualify for a better mortgage.

Seeking Solutions

People who are in the low-income bracket may opt for an FHA mortgage, which has a low down payment and interest rates. For those who are already in such a mortgage, they can consider an FHA Stream Line in Salt Lake City. The likes of City Creek Mortgage, for instance, can provide one.

This refinancing program is ideal for those whose home values have underappreciated. It doesn’t ask for an appraisal. The approval process is also fast since it’s a backed loan. It also doesn’t verify income or even credit score.

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Another option is to sell the house while it still has a good value in the market. In Salt Lake City, the market condition is neutral, which means it favors neither the buyer nor the seller. But the projections indicate the prices will increase 3.4% in 2019.

When you need help, experts always recommend discussing your options with the lender. The sooner you ask for one, the faster you can ease your financial burden and avoid foreclosure.