A recent survey 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. The number of underwater home loans is slowly decreasing though. That aside, some areas are still in trouble as major metropolitan areas have increasing numbers of foreclosures.
A fifth of all homes underwater
As outlined by CNN Money, just over 20 percent of homeowners owed more than their homes are worth. That figure is at 21.5 percent, down from 23.3 percent, indicating some homes gained more than a payday loans worth. This means there is less negative equity. That’s lots of individuals that cannot use or likely get mortgage loan modification. Some people would be better if they get a personal loan to help them leave their underwater homes, as less equity means less ability to get debt relief.
Foreclosures and values climb
Real estate prices are beginning to improve. One can never purchase a home for the same as a money advance, but the cost of homes is improving. 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 nevertheless the worst city in America for real estate. . About one in 15 homes are in foreclosure.
There are few relative improvements to speak of. Unemployment is down a little, and maybe a few individuals aren’t as bad off as they used to be. 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
