Homes Underwater in the Coachella Valley 2nd Quarter
The percentages of homes underwater vary widely based on the city. Some 68 percent of homeowners in Coachella are underwater, for instance, while 19 percent of homes in Indian Wells were underwater in the second quarter, Husing said.Nationwide, about 22 percent of homes with a mortgage are underwater.
A new program this month from mortgage-finance giants Fannie Mae and Freddie Mac aims to make short sales easier for homeowners. In short sales, lenders agree to sell the house for less than the full amount owed on the mortgage.
Under the plan designed by the Federal Housing Finance Agency, owners who are current on their payments would qualify when they run into financial trouble that could ultimately force them to default on their loans.
The changes affect underwater homeowners whose mortgages are guaranteed by Fannie Mae and Freddie Mac, as well as relief to those underwater borrowers who need to relocate more than 50 miles for a job, FHFA Acting Director Edward DeMarco said in a statement.
PERCENTAGES OF HOMES IN THE COACHELLA VALLEY UNDERWATER
Coachella: 68 percent
Desert Hot Springs: 63 percent
Indio: 54 percent
Cathedral City: 50 percent
La Quinta: 36 percent
Rancho Mirage: 36 percent
Palm Springs: 32 percent
Palm Desert: 20 percent
Indian Wells: 19 percent
Riverside County: 51 percent
Source: Economist John Husing; Zillow