Aug
31

Rise of Home Values Wards Off More Foreclosures

August 31, 2012

Equity rising is pushing away some foreclosuresThe heavy burden of negative equity, owing more to the bank than your home is worth, is easing off of many homeowners and helping to end the

foreclosure crisis. This will give homeowners the freedom to sell their property in search of better jobs and areas, and have a little more protection against hard times. The Equifax Finance Blog shares more about what changes in the market mean for homeowners in the new article, “

One Million Homeowners Are Back in the Black.”

The reduced inventory, as low as 20 percent less in many areas, far outpaces government or bank programs to reduce costs as the biggest way homeowners are being helped. This reduction in inventory is because so many owners can’t afford to sell in their current position, so homes on market experience bidding wars and multiple offers, which leads to higher prices. These higher prices in turn raise the value of areas and the other homes within them. As it stands, at the end of the first quarter of 2012, 1.9 million homeowners were within five percent of reaching positive equity, or a value greater than their loan. As those 1.9 million and more reach positive equity and have the freedom to sell their home without owing more to the bank, there will be more choices for buyers.

This spells a slide toward healthy markets once more, which will also boost the overall recovery. There is still a long way to go, so keep up with the Equifax Finance Blog to learn more about how to make your money go further, from real estate to

retirement and more.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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