Even though inflation is cooling, many people are still feeling financial pressure, raising concerns about potential mortgage struggles. But does this mean we're facing a wave of foreclosures? Here’s why top realtors in Cookeville, TNand experts agree that this is unlikely.

Few Homeowners Are Behind on Mortgages

During the last housing crisis, loose lending standards allowed many people to take on mortgages they couldn’t afford, leading to mass foreclosures. However, today’s lending practices are much stricter, ensuring that buyers are more financially qualified. This shift has significantly lowered the risk of foreclosures, even for those seeking homes for sale in Cookeville, TN. Data from Freddie Mac and Fannie Mae shows that the number of homeowners seriously behind on their mortgage payments has been steadily declining.

Qualified borrowers are finding ways to manage their finances, either through repayment plans or leveraging the equity they’ve built to sell their homes rather than face foreclosure. Real estate agents in Cookeville, TN are seeing many homeowners in stronger positions than during the last crisis.

No Foreclosure Wave on the Horizon

For a foreclosure wave to occur, the number of people falling behind on mortgage payments would need to rise significantly. But with many homeowners staying current on payments and holding substantial equity, that scenario seems unlikely. Bill McBride, a housing expert who accurately predicted the 2008 foreclosure crisis, notes:

“We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.”

Bottom Line

If you're worried about a foreclosure crisis impacting real estate in Cookeville, TN, the data shows no cause for alarm. With stricter lending standards and strong equity positions, homeowners are in a much better place to keep up with their mortgage payments. Whether you’re exploring new homes for sale in Cookeville, TN, or seeking cheap houses for sale in Cookeville, TN, the market remains stable and foreclosure risks are low. Connect with a trusted realtor in Cookeville, TN for more insights into the local market.