Recent studies reveal that 20 percent of Americans owe more on their homes than the home is worth. Mortgage loan modification, even if they could get it, would do no good for 1 in 5 homeowners. That number is slowly decreasing, though. .
One fifth of all homes underwater
According to CNN Money, just over 20 percent of homeowners owed more than their homes are worth. Housing gained more than a worth per home, as the figure is down to 21.3 percent from 23.3. percent last quarter. Negative equity is decreasing nationally. 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 bank loan to get out of a house inching closer to foreclosure.
Values climb but so do foreclosures
Real estate prices are beginning to improve. Granted, one can never expect to buy a house for a cash advance, but home prices are beginning to climb. 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 nevertheless a wreck. Unemployment is over than 14 percent, and 74 percent of homes are underwater in Sin City. About one in 15 homes are in foreclosure.
Improvements are modest
The improvements within the economy are few. The unemployment rate has dipped slightly, and some individuals are not as bad off as they used to be on their mortgages. The recovery is very slow going.
Find more info on this subject
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
