Are mortgages underwater? Yes! 20% of them
It is not really a good data, but is true that 20% of the entire nation's mortgages are underwater
. These mortgagees now owe more that the market value of their homes. This situation has come up, because of weak and troubled economy where the properties are degrading in terms of market value. With no equity in their properties, people can't even go for refinancing of their mortgages. The reading has however changed a bit, because the 3rd quarter of the year 2010 has registered 21.5% of the mortgages are underwater as against 23.3% in previous quarter.To be more precise, the homeowners are not facing zero equity. Rather, they are facing negative equity. This negative equity is major predictor for foreclosures and comes second after income loss, which is the major cause of foreclosures all over the nation. This is a major concern for the US people, because along with unemployment, negative equity is playing a huge role in causing foreclosures, which in turn is leading to problems for the housing market.
In some of the most troubled metro areas, mortgages have come out of the underwater status, because of the increasing demand, which in turn has been caused by fact that too many people have lost their homes to foreclosures, forcing the lenders to sell properties at under-priced rates. This, however, is a great chance for those who are looking to invest in foreclosures, because now they have the opportunity of investing in good houses for sale at affordable prices.
For the latest news and updated listings of foreclosures, visit ForeclosureDataBank.com. You will always find what you want.
Are mortgages underwater? Yes! 20% of them
By: rudsontren