Friday, August 13, 2010

20 percent of property owners have underwater mortgage loans

A recent investigation indicates that just more than 20 percent of American homeowners are underwater on their home loans. Mortgage loan modification, even if they could get it, would do no good for 1 in 5 homeowners. That number is slowly decreasing, though. However, that decrease is partly as a result of number of foreclosures, which is still increasing in major metropolitan areas. Source of article – 20 percent of homeowners underwater on mortgage loans by Personal Money Store.

A fifth of all homes underwater

According to CNN Money, just over 20 percent of homeowners owed more than their homes are worth. Housing gained more than a payday loan worth per home, as the figure is down to 21.3 percent from 23.3. percent last quarter. This means there is less negative equity. That’s a lot of people that can’t use or likely get mortgage loan modification. As less equity means less debt relief in a depressed market, some would be better off if they were to get a personal unsecured loan to get out of a house inching closer to foreclosure.

Foreclosures and values are climbing

Real estate prices are starting to improve. Though the price was at bottom but improving, one can never expect to finance a house with a cash advance. Large urban areas saw the most improvement. That said, about 75 percent of major cities saw more foreclosures. Las Vegas is nevertheless ruined concerning real estate. Unemployment there is higher than 14 percent, and almost 74 percent of homes in Sin City are underwater. The rate of foreclosure is 1 in 15.

Steady but very slow

The improvements are almost negligible. There was a slight dip in unemployment, and possibly a few mortgage loans are better off. What recovery has taken place is doing so at a very slow pace.

Additional reading

CNN

money.cnn.com/2010/08/09/real_estate/fewer_underwater_borrowers/index.htm

money.cnn.com/2010/07/29/real_estate/new_face_of_foreclosure/index.htm



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