Some may need a submarine in this real estate market. Image from Wikimedia Commons.
A recent survey indicates that just more than 20 percent of American homeowners are underwater on their mortgages. That means that one in five people who own their homes would be no better off with 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, some areas are worse off than others, as large metropolitan areas are still experiencing greater numbers of foreclosures.
A fifth of all homes underwater
According to CNN Money, a real estate survey indicated that just more than 20 percent of American home owners owed more on their mortgages than their homes are worth. However, the 21.5 percent who are currently underwater is down from 23.3 percent from the previous quarter, which means some homes gained more than a payday loans worth. This means there is less negative equity. That said, one in five people still probably won’t get offered mortgage loan modification, as it would do them no good. As less equity means less debt relief in a depressed market, some would be better off if they were to get a personal loan to get out of a house inching closer to foreclosure.
Values climb but so do foreclosures
Real estate values are starting to climb in some areas. Granted, one can never expect to buy a house for a cash advance, but home prices are starting to climb. Major metro areas where most homes are underwater benefited most. However, the number of foreclosures increased for 75 percent of all major cities despite home values creeping up. Las Vegas, Nev., is still the worst city in America for real estate. Unemployment there is higher than 14 percent, and almost 74 percent of homes in Sin City are underwater. About one in 15 homes are in foreclosure.
Slow and steady
There are few relative improvements to speak of. The unemployment rate has dipped slightly, and some people are not as bad off as they used to be on their mortgages. What recovery has taken place is doing so at a very slow pace.
Further Reading
CNN Money on Underwater Mortgages
