Home values in the U.S. are growing at such a slow rate, many struggling homeowners may be stuck with their mortgages for years to come. Zillow’s Negative Equity Report sheds some light on the situation. When a homeowner’s mortgage balance is higher than the fair market value of their property, it is called an “underwater” mortgage. Of those homeowners who were underwater, nearly half—about 4 million—owed 20% or more of their home’s actual value. In 2015’s first quarter, 15.4% of homeowners had negative equity in their home. While this is a decrease from 16.9% in 2014’s last quarter, the outlook is grim for homeowners who want to sell. Also, the report showed that lower-end homes were more than three times as likely to have negative equity as higher valued homes.
With spring and summer marking the busiest time of year for buying and selling homes, there has been a spike in demand. Unfortunately, many homeowners remain stuck because they cannot afford to sell at the buyers desired price. While it is great news to see the amount of negative equity decreasing across the nation, the extent of negative equity is a concern for many. Millions of Americans’ homes are so far underwater, they may not be able to regain equity for a decade or longer, according to Zillow’s Chief Economist, Dr. Stan Humphries.
The fact that the highest amount of negative equity is found in lower-valued homes means that this imbalance will directly affect future affordable home sales. With so many homeowners stuck underwater, the housing economy will face inflated home prices, limited inventory and a strained growth on home values. Among the 35 largest housing markets, Miami and Detroit were shown to have the greatest amounts of homeowners underwater. Both Miami and Detroit showed more than 60% of homeowners with negative equity and more than 20% percent of those homeowners were underwater.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Source:
http://www.nhbr.com/June-26-2015/4-million-US-homeowners-still-underwater/
