Recent studies reveal that 20 percent of Americans owe more on their homes than the home is worth. Mortgage loan modification, even if they could get it, would do no good for 1 in 5 homeowners. The number of underwater mortgage loans is slowly decreasing though. However, some areas are worse off than others, as large metropolitan areas are nevertheless experiencing greater numbers of foreclosures.
A fifth of mortgages underwater
According to CNN Money , a real estate survey indicated that just more than 20 percent of American home owners owed more on their home loans than their homes are worth. However, the 21.5 percent who are presently underwater is down from 23.3 percent from the previous quarter, which means some homes gained more than a payday advances worth. That means the amount of national negative equity is decreasing. Still, that’s 20 out of every 100 that wouldn’t get or be able to use mortgage loan modification anyway. Less equity means less likelihood of debt relief, and some might be better off if they get a personal unsecured loan and get out of their toxic mortgage.
Foreclosures and values are climbing
There is actually some improvement in real estate prices. Granted, one can never expect to buy a house for a cash advance, but home prices are starting to climb. Large urban areas saw the most improvement. That improvement may be reflective of the 75 percent of major cities which had more foreclosures. Las Vegas is nevertheless a wreck. 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.
Improvements are modest
The improvements are almost negligible. There was a slight dip in unemployment, and perhaps a couple of home loans are better off. This recovery is certain taking its time.
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
