Home owners trapped by high mortgage balances
Still a good blog for homeowners who are underwater in their mortgage. Most of the cities here in Northern California outside the Greater San Francisco Bay Area are still affected by underwater mortgages. Thanks for sharing.
Home owners trapped by high mortgage balances
Today’s issue of The Washington Post includes an article titled “Many still underwater despite rising prices.” This article, by reporter Kathy Orton, provides some very interesting housing statistics from RealtyTrac.
Home prices are definitely rising in Maryland and multiple contract competition is common in some areas that include Montgomery County. However, home buyers face an inventory shortage that limits the selection that would be preferred by many purchasers.
One of the reasons for the lower than normal inventory of houses for sale is that over 350,000 Maryland home owners still owe substantially more on their mortgages than the current market value of their homes. RealtyTrac is quoted as classifying 25% of Maryland mortgages as “deeply underwater.” A high percentage of these home owners are trapped in their present homes because they are unable to absorb a loss upon sale and still be in the position to purchase another property.
Rising home prices will continue to allow more home sales transactions, but it will be some time before many home owners will be able to sell their homes. It is unfortunate that these underwater mortgage borrowers are unable to take advantage of the current very low mortgage interest rates to purchase a new home.
Dahlia in our home garden...
Dahlia, Kentlands IMG_9402
Photograph by Roy Kelley using a Canon PowerShot G11 Camera.
Roy and Dolores Kelley Photographs
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.
Roy Kelley
Roy Kelley & Associates
Associate Broker, RE/MAX Realty GroupClient Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008
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