One in five home loans underwater

Recent information suggests that over 20 percent of homeowners have underwater mortgage loans. That means 1 in 5 people wouldn’t benefit from mortgage loan modification even if they could get it. The number of individuals who owe more than their homes are worth is slowly but surely declining. Nevertheless, that decrease is partly as a result of number of foreclosures, which is still increasing in major metropolitan areas. Article resource – 20 percent of homeowners underwater on mortgage loans by Personal Money Store.

A fifth of mortgages underwater

According to CNN Money , a real estate survey indicated that just more than 20 percent of American home owners owed more on their mortgage loans 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 pay day loans worth. That means the amount of national negative equity is decreasing. That’s a lot of individuals that cannot use or likely get mortgage loan modification. As less equity means less debt relief in a depressed market, some would be better off if they were to get a personal unsecured loan to get out of a house inching closer to foreclosure.

As values climb so do foreclosures

Real estate prices are beginning to improve. One can never purchase a home for the same as a cash advance, but the cost of homes is improving. 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 ruined concerning real estate. Sin City has 14 percent unemployment, and almost three quarters of homes there have underwater mortgages. One in 15 homes there are in foreclosure.

Slow and steady

There are few relative improvements to speak of. There was a slight dip in unemployment, and perhaps a few mortgages are better off. What recovery has taken place is doing this 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