The general trend for home values in the United States, in the wake of the recession and the dramatic dip in value that it created, has been a notable increase. While there are exceptions, many homeowners have seen the values of their homes rise.
However, a new study looked at homes that people lost in the Great Recession through foreclosure. What it found was very interesting.
Typically, the value of a home in the United States has been going up by around 6.5 percent every year. That's how fast the house appreciates. If you look at the full recovery after the recession, many homes have gained about 46 percent in value.
Of course, this is an average, but it still paints a clear picture of the trend.
A home that was foreclosed on, though, has gone up by an average of 74.5 percent. In the past year, the study found that these homes appreciated by about 10.3 percent. Overall, houses that people lost in the recession have remarkably gained more ground than the average house that a person owns.
What this shows you is that the real loss when your home goes through foreclosure could be even greater than you realize. None of the people who owned these well-performing houses actually saw the monetary benefits of the increase. They didn't own the homes anymore. That value was lost to them when the bank took the home back.
If you are facing foreclosure, it is important to think about the future and the big financial picture. Make sure you know about all of the legal options you have to protect your investment.