20 percent of homeowners have underwater home loans

Recent data indicates that over 20 percent of homeowners have underwater mortgage loans. That means 1 in 5 people would not benefit from mortgage loan modification even if they could get it. The number of people who owe more than their homes are worth is slowly but surely declining. However, that decrease is partly due to the number of foreclosures, which is still increasing in major metropolitan areas. Post resource – 20 percent of homeowners underwater on mortgage loans by Personal Money Store.

20 percent of mortgages underwater

According to CNN Money , a real estate study indicated that just more than 20 percent of American home owners owed more on their mortgage loans than their homes are worth. Housing gained more than a pay day loan worth per home, as the figure is down to 21.3 percent from 23.3. percent last quarter. That means the amount of national negative equity is decreasing. That said, one in five people still probably won’t get offered mortgage loan modification, as it would do them no good. Some people would be better if they get a unsecured loan to help them leave their underwater homes, as less equity means less ability to get debt relief.

Foreclosures and values climb

Real estate values are starting to climb in some areas. Granted, one can never expect to buy a house for a money advance, but home prices are starting to climb. Major metro areas where most homes are underwater benefited most. That said, about 75 percent of major cities saw more foreclosures. Las Vegas is still ruined concerning real estate. Unemployment there is higher than 14 percent, and almost 74 percent of homes in Sin City are underwater. One in 15 homes there are in foreclosure.

Very slow but steady

The improvements within the economy are few. Unemployment is down just a little, and maybe a few people aren’t as bad off as they used to be. What recovery has taken place is doing this at a very slow pace.

More on this topic

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