Mortgage violence programs are ending, but hundreds of thousands of homeowners continue to struggle with payments.

If loan changes still don’t help, homeowners can close them. But selling the home, which is likely to create a lot of wealth over the past year, is a much better option.

However, this is an option that can be forgotten. After all, nearly a third of foreclosure borrowers have at least 40% equity in their homes, according to recent data from Black Knight, a software and mortgage analytics company.

Home prices have risen nearly 20% year-on-year, which could add more equity to those who need to sell and pay off the mortgage.

In some cases, pandemic aid allows homeowners in financial distress to withhold payments for their homes for up to 18 months. But when these programs expire, three-quarters of a million homeowners have given up on those plans in the past three months alone.

Many mortgage brokers are happy to offer loan modifications and lower interest rates to borrowers who are leaving deferral programs but are still financially unstable. However, some borrowers are still unable to make payments.

Black Knight said more than half of the 7.7 million borrowers in foreclosure programs are aware of their mortgages and have resumed payments.

About 3% of borrowers, or 264,000 borrowers, are behind the mortgage at the end of the program. 38,000 are inactive closure, says Black Knight. But it may not be. Some homeowners may not know how much equity they have built. According to an analysis by RealtyTrac, around 87% of homeowners who are closing down have a positive net worth. Furthermore, approximately 73% of foreclosed borrowers have more than 20% equity and approximately 28% more than 50% equity.

“While equity hasn’t stopped them from paying off their loans, it should give them the option of a soft landing – the opportunity to sell their home for a profit, to pay off the debts they owe. To give them the chance to start over, ”said Rick Sharga, RealtyTrac executive.

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