It would not be incorrect to say that the COVID-19 pandemic has been the gravest human catastrophe in recent memory. The pandemic that swept the world not only resulted in millions of deaths but also in completely changing the way people live and interact with each other. There is hope, and the world is slowly healing from the effects and learning to adapt to a new paradigm. However, there have been some positive developments as well. The property market, for instance, has seen a boom, and now is the best time to start investing.
Forbearance and foreclosures
In light of the current pandemic and the economic fallout of the situation, the government had placed a moratorium on federally backed mortgages. This meant that individuals unable to meet their mortgage payments would not face foreclosure, at least for the period of the moratorium. With the moratorium expired, meaning the end of the forbearance period, the possibility of foreclosure is very real.
While foreclosure has always been considered a dirty word, it does not necessarily have to be a completely negative experience. Many individuals can benefit as a result of a foreclosure on their property.
Benefiting from a foreclosure
Here are 10 ways you can benefit when being faced with a foreclosure:
1. Negotiate better terms
The property market is constantly changing. This means you can go house hunting and start to look for options that suit you. You may get a better deal compared to your existing mortgage plan.
2. Match your existing financial position
Another great thing about being released from an existing mortgage agreement is that you can sign up for the next one, keeping in mind your current financial position. Maybe when you initially signed up for the mortgage, you did not have a great credit history, which can help you get better mortgage rates. You can make a decision more suitable with your current status.
3. Avail buyers’ market opportunity
With so many foreclosures pending, it is a great time to be a buyer. You will have plenty of options to consider, and there is a high probability of you finding the house of your dreams.
4. Get a new start
Losing a house is not fun, but you can have a positive attitude about it. Getting a new place is the best time to make changes in your life and get a fresh start. Maybe you were tied to a job you didn’t enjoy or an area where you did not want to live because of the mortgage plan. A foreclosure can mean you are moving to wherever you want.
5. Save up
A foreclosure can also be the perfect time to start saving. Since mortgage payments are most often the biggest expense, you can save a lot by living on rent or moving in with a relative. This way, you can save up for your dream house later in the future.
6. Become an investor
Since the market is so good right now, you can get into the game by buying up foreclosed properties and upscaling them. It would surprise you to know just how much profit you can make by renovating a house. Even if your property is foreclosed, buying a foreclosed one gives you a roof over your head, and working towards selling it kills two birds with one stone by giving you work.
7. Be free
Like already mentioned, a mortgage is a huge expense. Sometimes losing a house means getting rid of the burden of having to meet your monthly expenses. This can be truly liberating.
8. Pursue other passions
With the threat of foreclosure and losing a house gone, you can quit an unfulfilling job and begin to follow your dreams. Maybe this is the push you always needed to get on the right track.
9. Make better decisions
Now that you have lived on your own in an area for a, while you can better decide where you want to settle in. you can examine the pros and cons of living in an area and determine the things you cannot compromise on so the next property you look for is in an area that fully meets your needs.
10. Better financial management
It can be sad, but a foreclosure can be good for your finances. You do not need a house that you can barely pay for. You can save money or invest it or just get a better deal elsewhere. It is not a big deal, and foreclosures are not the end of the world.
