Do you recall the year 2020 when the CARES Act was enacted, obliging mortgage lenders to permit nearly anyone to suspend their repayments? According to the Mortgage Bankers Association, approximately 7.8 million homeowners received relief between 2020 and 2023. So, why didn’t we witness a surge in foreclosures?
Forbearance in Action
As of December 2023, Josephine County experienced only 12 new foreclosures. The combined value of the properties foreclosed upon in December exceeded $3 million, with a Real Market Value (RMV) estimation. Upon closer examination of these figures, it is evident that the majority of these properties are situated outside the city limits of Grants Pass.
In 2023, the monthly average for foreclosures was between 10 and 11, marking a substantial increase from the figures recorded in 2022 and 2021. However, the number remains relatively low for a straightforward reason – equity.
Rise in Equity
Home equity is defined as the disparity between your mortgage debt and the current value of your home. For instance, if your mortgage debt is $200,000, and your home is valued at $350,000, your equity amounts to $150,000. Notably, Oregonians possess the sixth-highest average equity value among states, with homeowners averaging over $240,000 in equity.
The double-edged nature of equity becomes apparent when considering that while the median value of homes in Josephine County has surged by 68% in the last five years, this figure also pertains to the cost of acquiring a replacement home. Despite witnessing a decrease in rental costs over the past few months, locals can attest to the rapid increase in rental prices.
What To Do If Facing Foreclosure?
Undoubtedly, facing difficulties in meeting mortgage payments can be daunting. However, if you have resided in your home for more than two or three years, various options are likely available. Instead of avoiding the issue, it is advisable to seek assistance from professionals who can guide you.
Formulating a comprehensive plan of action, which includes a Comparative Market Analysis (CMA), a timeline, and an exit strategy leading to a new residence, is entirely feasible. It’s crucial to recognize that you have alternatives. If you are eagerly anticipating foreclosures hitting the market, be prepared for a potentially prolonged wait.
Travis Moddison is a real estate broker and co-owner of Whole Heart Realty, a brokerage dedicated to serving Grants Pass with professionalism and value. He also runs a YouTube
channel providing information on Oregon, and updates on news/events impacting Oregonians.
In addition to real estate, Travis is an active musician with the Rogue Valley Symphony and
raises ducks as a hobby. He loves to have evening jam sessions with his wife Alyssa, and three
sons – Gabriel, Wynston, and Stephen.
