A recent investigation indicates that just more than 20 percent of American homeowners are underwater on their home loans. That means that one in five individuals who own their homes would be no better off with mortgage loan modification, even if they could get it. That number is slowly decreasing, though. However, some areas are worse off than others, as large metropolitan areas are nevertheless experiencing greater numbers of foreclosures.
20 percent of 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 advances worth. Negative equity is decreasing nationally. That said, one in five people nevertheless probably won’t get offered mortgage loan modification, as it would do them no good. 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.
As values climb so do foreclosures
Real estate values are starting to climb in some areas. Though the price was at bottom but improving, one can never expect to finance a house with a cash advance. Major metro areas where most homes are underwater benefited most. That improvement may be reflective of the 75 percent of major cities which had more foreclosures. Las Vegas is still a wreck. Sin City has 14 percent unemployment, and almost 3 quarters of homes there have underwater mortgages. One in 15 homes you will find in foreclosure.
The economy wants to one day have even modest recovery
There are few relative improvements to speak of. There was a slight dip in unemployment, and possibly a couple of mortgage loans are better off. This recovery is sure taking its time.
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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