According to numbers released by CoreLogic, about 22.3% of homeowners with mortgages were underwater at the end of the second quarter this year. This number is still high, but it is down from 23.7% at the end of the first quarter of the year.
On the positive side, 1.3 million borrowers moved to being above water on their mortgages in the first half of the year but still 27% of mortgage holders were considered to be underwater or near underwater at the end of the first half of the year.
Another interesting fact is that people that purchased a home for under $200,000 are the most underwater on their mortgages with 32% while only 17% of people with homes purchased over $200,000 are upside down on their mortgages.
According to CoreLogic, just another 5% increase in home sales prices would dramatically lower the amount of homeowners that are underwater on their mortgages.
The effects of low inventory in the housing market are helping turn things around. Inventory has been down for some time now and is helping to spur on the housing market. Some of the effects are:
So while some buyers may not like the price increases taking place with the depleted home inventory, it is a positive step in helping the market recover.
What is a short sale? Do you know the difference between a short sale and foreclosure? Do you know what to do to avoid being foreclosed on? Do you know what programs are available to possibly help you avoid a short sale/foreclosure? Many homeowners are underwater, meaning they own more on their home than what it is worth, they can no longer afford their mortgage payments for a variety of reasons and do not know where to turn. This video gives a quick overview of the process. I am a CDPE and have helped many homeowners avoid foreclosure by selling their home in a short sale. If you or someone you know is in need of help, take a look at the short sale tab on my website for more information or contact me for a free, no obligation, confidential consultation.
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